Document And Entity Information
Document And Entity Information | 9 Months Ended |
Dec. 31, 2020 | |
Document Information [Line Items] | |
Entity Registrant Name | Just Energy Group Inc. |
Entity Central Index Key | 0001538789 |
Current Fiscal Year End Date | --03-31 |
Document Type | 6-K |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
INTERIM CONDENSED CONSOLIDATED
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - CAD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 66,635 | $ 26,093 |
Restricted cash | 207 | 4,326 |
Trade and other receivables, net | 344,080 | 403,907 |
Gas in storage | 16,185 | 6,177 |
Financial assets, current | 29,196 | 36,353 |
Income taxes recoverable | 4,928 | 6,641 |
Other current assets | 143,145 | 203,270 |
Total current assets excluding assets classified as held for sale | 604,376 | 686,767 |
Assets classified as held for sale | 2,571 | 7,611 |
Total current assets | 606,947 | 694,378 |
Non-current assets | ||
Investments | 32,889 | 32,889 |
Property and equipment, net | 20,638 | 28,794 |
Intangible assets, net | 86,618 | 98,266 |
Goodwill | 264,651 | 272,692 |
Financial assets, non-current | 20,071 | 28,792 |
Deferred income tax assets | 3,414 | 3,572 |
Other non-current assets | 33,814 | 56,450 |
Total non-current assets | 462,095 | 521,455 |
TOTAL ASSETS | 1,069,042 | 1,215,833 |
Current liabilities | ||
Trade and other payables | 472,763 | 685,665 |
Deferred revenue | 8,909 | 852 |
Income taxes payable | 3,434 | 5,799 |
Fair value of derivative financial liabilities, current | 110,166 | 113,438 |
Provisions | 5,945 | 1,529 |
Current portion of long-term debt | 3,535 | 253,485 |
Total current liabilities excluding liabilities associated with assets classified as held for sale | 604,752 | 1,060,768 |
Liabilities associated with assets classified as held for sale | 2,712 | 4,906 |
Total current liabilities | 607,464 | 1,065,674 |
Non-current liabilities | ||
Long-term debt | 515,233 | 528,518 |
Fair value liabilities, non-current | 136,329 | 76,268 |
Deferred income tax liabilities | 2,715 | 2,931 |
Other non-current liabilities | 23,144 | 37,730 |
Total non-current liabilities | 677,421 | 645,447 |
TOTAL LIABILITIES | 1,284,885 | 1,711,121 |
SHAREHOLDERS' DEFICIT | ||
Shareholders' capital | 1,537,863 | 1,246,829 |
Equity component of convertible debentures | 13,029 | |
Contributed deficit | (12,469) | (29,826) |
Accumulated deficit | (1,829,210) | (1,809,557) |
Accumulated other comprehensive income | 88,388 | 84,651 |
Non-controlling interest | (415) | (414) |
TOTAL SHAREHOLDERS' DEFICIT | (215,843) | (495,288) |
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT | $ 1,069,042 | $ 1,215,833 |
INTERIM STATEMENTS OF INCOME (L
INTERIM STATEMENTS OF INCOME (LOSS) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONTINUING OPERATIONS | ||||
Sales | $ 540,067 | $ 658,521 | $ 1,782,803 | $ 2,097,126 |
Cost of goods sold | 359,622 | 446,552 | 1,112,510 | 1,748,281 |
GROSS MARGIN | 180,445 | 211,969 | 670,293 | 348,845 |
INCOME (EXPENSES) | ||||
Administrative | (30,408) | (39,616) | (112,507) | (121,885) |
Selling and marketing | (42,269) | (51,270) | (137,140) | (167,253) |
Other operating expenses | (10,239) | (28,878) | (50,915) | (104,485) |
Finance costs | (17,677) | (28,178) | (69,274) | (80,175) |
Restructuring costs | (7,118) | |||
Gain on Recapitalization transaction, net | 1,026 | 51,367 | ||
Unrealized gain (loss) of derivative instruments and other (facing financial) | (71,558) | 36,990 | (79,177) | (139,547) |
Realized gain (loss) of derivative instruments | (56,905) | (78,220) | (276,808) | 78,348 |
Other expense, net | (1,431) | 1,649 | (4,488) | 29,734 |
Profit (loss) from continuing operations before income taxes | (49,016) | 24,446 | (15,767) | (156,418) |
Provision for income taxes | 3,311 | 3,845 | 4,618 | 3,604 |
Profit (loss) for the period from continuing operations | (52,327) | 20,601 | (20,385) | (160,022) |
DISCONTINUED OPERATIONS | ||||
Gain (Loss) from discontinued operations | 4,788 | 6,293 | 630 | (8,705) |
PROFIT (LOSS) FOR THE PERIOD | (47,539) | 26,894 | (19,755) | (168,727) |
Attributable to: | ||||
Shareholders of Just Energy | (52,315) | 20,614 | (20,260) | (159,975) |
Discontinued operations | 4,788 | 6,293 | 630 | (8,705) |
Non-controlling interest | (12) | (13) | (125) | (47) |
PROFIT (LOSS) FOR THE PERIOD | $ (47,539) | $ 26,894 | $ (19,755) | $ (168,727) |
Basic earnings (loss) per share | ||||
Basic earnings (loss) per share from continuing operations | $ (1.09) | $ 2.08 | $ (0.77) | $ (16.25) |
Diluted (in CAD per share) | (1.09) | 2.07 | (0.77) | (16.25) |
Earnings (loss) per share from discontinuing operations | ||||
Basic (in CAD per share) | 0.10 | 0.64 | 0.02 | (0.88) |
Diluted (in CAD per share) | 0.10 | 0.63 | 0.02 | (0.88) |
Earnings (loss) per share available to shareholders | ||||
Basic (in CAD per share) | (0.99) | 2.72 | (0.75) | (17.13) |
Diluted (in CAD per share) | $ (0.99) | $ 2.70 | $ (0.75) | $ (17.13) |
INTERIM CONDENSED CONSOLIDATE_2
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
PROFIT (LOSS) FOR THE PERIOD | $ (47,539) | $ 26,894 | $ (19,755) | $ (168,727) |
Unrealized gain (loss) on translation of foreign operations, net of tax | 3,514 | (6,258) | 4,308 | (4,476) |
Unrealized gain (loss) on translation of foreign operations from discontinued operations | (945) | (156) | 4,721 | |
Gain (loss) on translation of foreign operations disposed and reclassified to consolidated statement of income (loss) | (1,248) | 11,610 | (415) | 11,610 |
Other comprehensive income, net of tax, exchange differences on translation | 1,321 | 5,352 | 3,737 | 11,855 |
TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD, NET OF TAX | (46,218) | 32,246 | (16,018) | (156,872) |
Total comprehensive income (loss) attributable to: | ||||
Shareholders of Just Energy | (46,206) | 32,259 | (15,893) | (156,825) |
Non-controlling interest | (12) | (13) | (125) | (47) |
TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD, NET OF TAX | $ (46,218) | $ 32,246 | $ (16,018) | $ (156,872) |
INTERIM CONDENSED CONSOLIDATE_3
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) - CAD ($) $ in Thousands | Retained earnings attributable to accumulated earnings (losses) | Retained earnings, portion attributable to dividends | Retained earnings | Accumulated other comprehensive income | Issued capitalOrdinary shares | Issued capitalPreference shares | Issued capital | Reserve of equity component of convertible instruments | Share premium (deficit) | Non-controlling interests | Total |
Balance, beginning of period at Mar. 31, 2019 | $ 450,032 | $ (1,923,808) | $ 79,093 | $ 1,088,538 | $ 146,965 | $ 13,029 | $ (25,540) | $ (399) | |||
Statement Line Items [Line Items] | |||||||||||
Profit (loss) for the period as reported, attributable to shareholders | (168,680) | (47) | $ (168,727) | ||||||||
Balance, end of period at Dec. 31, 2019 | 281,352 | (1,949,167) | $ (1,667,815) | 90,948 | 1,099,255 | 146,965 | $ 1,246,220 | 13,029 | (30,819) | (388) | (348,825) |
Statement Line Items [Line Items] | |||||||||||
Dividends and distributions declared and paid | (25,359) | ||||||||||
Other comprehensive income | 11,855 | ||||||||||
Share-based units exercised | 10,717 | (10,717) | |||||||||
Add: Share-based compensation expense | 10,469 | ||||||||||
Discontinued operations | 254 | ||||||||||
Share-based compensation adjustment | (3,470) | ||||||||||
Non-cash deferred share grant distributions | (1,815) | ||||||||||
Foreign exchange impact on non-controlling interest | 58 | ||||||||||
Balance, beginning of period at Mar. 31, 2019 | 450,032 | (1,923,808) | 79,093 | 1,088,538 | 146,965 | 13,029 | (25,540) | (399) | |||
Balance, end of period at Mar. 31, 2020 | 140,446 | (1,950,003) | 84,651 | 1,099,864 | 146,965 | 1,246,829 | 13,029 | (29,826) | (414) | (495,288) | |
Statement Line Items [Line Items] | |||||||||||
Share-based units exercised | 11,326 | ||||||||||
Profit (loss) for the period as reported, attributable to shareholders | (19,630) | (125) | (19,755) | ||||||||
Balance, end of period at Dec. 31, 2020 | $ 120,816 | (1,950,026) | $ (1,829,210) | 88,388 | 1,537,863 | $ 1,537,863 | (12,469) | (415) | $ (215,843) | ||
Statement Line Items [Line Items] | |||||||||||
Dividends and distributions declared and paid | $ (23) | ||||||||||
Other comprehensive income | $ 3,737 | ||||||||||
Issuance of shares due to Recapitalization | 438,642 | ||||||||||
Issuance cost associated with Recapitalization | (1,572) | ||||||||||
Share-based units exercised | $ 929 | (929) | |||||||||
Settled with common shares | $ (146,965) | ||||||||||
Settled with common shares | $ (13,029) | ||||||||||
Add: Share-based compensation expense | 5,657 | ||||||||||
Transferred from equity component | 13,029 | ||||||||||
Share-based compensation adjustment | (423) | ||||||||||
Non-cash deferred share grant distributions | $ 23 | ||||||||||
Foreign exchange impact on non-controlling interest | $ 124 |
INTERIM CONDENSED CONSOLIDATE_4
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - CAD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
OPERATING | ||
Profit (loss) from continuing operations before income taxes | $ (15,767) | $ (156,418) |
Profit (loss) from discontinued operations before income taxes | 681 | (8,455) |
Profit (loss) before income taxes | (15,086) | (164,873) |
Items not affecting cash | ||
Depreciation and amortization | 18,462 | 28,817 |
Share-based compensation expense | 5,657 | 10,469 |
Financing charges, non-cash portion | 22,459 | 16,138 |
Gain on sale of subsidiaries, net | 423 | (45,138) |
Unrealized loss in fair value of derivative instruments and other | (79,177) | (139,547) |
Gain from Recapitalization transaction | (78,792) | |
Net change in working capital balances | (30,387) | 37,191 |
Adjustment for discontinued operations | (4,120) | (4,649) |
Income taxes paid | (8,823) | (9,367) |
Cash inflow from operating activities | (11,030) | 8,135 |
INVESTING | ||
Purchase of property and equipment | (333) | (806) |
Purchase of intangible assets | (7,638) | (11,918) |
Payments for previously acquired business | (12,013) | |
Proceeds from disposition of subsidiaries | 4,618 | 7,672 |
Cash outflow from investing activities | (3,353) | (17,065) |
FINANCING | ||
Dividends/distributions paid | (25,335) | |
Repayment of long-term debt | (4,204) | (6,027) |
Leased asset payments | (3,062) | (4,460) |
Debt issuance costs | (6,625) | (1,737) |
Share swap payout | (21,488) | |
Credit facility withdrawal (repayment) | (3,770) | 54,794 |
Proceeds from issuance of common stock, net | 100,969 | |
Cash inflow (outflow) from financing activities | 61,820 | 17,235 |
Effect of foreign currency translation on cash balances | (6,895) | (244) |
Net cash inflow | 40,542 | 8,061 |
Cash and cash equivalents, beginning of period | 26,093 | 9,927 |
Cash and cash equivalents, end of period | 66,635 | 17,988 |
Supplemental cash flow information: | ||
Interest paid | $ 46,815 | $ 54,480 |
ORGANIZATION
ORGANIZATION | 9 Months Ended |
Dec. 31, 2020 | |
ORGANIZATION | |
ORGANIZATION | 1. ORGANIZATION Just Energy Group Inc. (“Just Energy” or the “Company”) is a corporation established under the laws of Canada to hold securities of its directly or indirectly owned operating subsidiaries and affiliates. The registered office of Just Energy is First Canadian Place, 100 King Street West, Toronto, Ontario, Canada. The unaudited interim condensed consolidated financial statements (“Interim Financial Statements”) consist of Just Energy and its subsidiaries and affiliates. The Interim Financial Statements were approved by the Board of Directors on February 25, 2021. |
OPERATIONS
OPERATIONS | 9 Months Ended |
Dec. 31, 2020 | |
OPERATIONS | |
OPERATIONS | 2. OPERATIONS Just Energy is a retail energy provider specializing in electricity and natural gas commodities and bringing energy efficient solutions and renewable energy options to customers. Operating in the United States (“U.S.”) and Canada, Just Energy serves both residential and commercial customers, providing homes and businesses with a broad range of energy solutions that deliver comfort, convenience and control. Just Energy is the parent company of Amigo Energy, Filter Group Inc. (“Filter Group”), Hudson Energy, Interactive Energy Group, Tara Energy and terrapass. Just Energy’s current commodity product offerings include fixed, variable, index and flat rate options. By fixing the price of natural gas or electricity under its fixed-price or price-protected program contracts for a period of up to five years, Just Energy’s customers offset their exposure to changes in the price of these essential commodities. Variable rate products allow customers to maintain competitive rates while retaining the ability to lock into a fixed price at their discretion. Flat-bill products allow customers to pay a flat rate each month regardless of usage. Just Energy derives its gross margin from the difference between the price at which it is able to sell the commodities to its customers and the related price at which it purchases the associated volumes from its suppliers. Just Energy offers green products through its JustGreen program. The JustGreen electricity product offers customers the option of having all or a portion of their electricity sourced from renewable green sources such as wind, solar, hydropower or biomass, via power purchase agreements and renewable energy certificates. The JustGreen gas product offers carbon offset credits that allow customers to reduce or eliminate the carbon footprint of their homes or businesses. Additional green products offered through terrapass allow customers to offset their carbon footprint without buying energy commodity products and can be offered in all states and provinces without being dependent on energy deregulation. Through the Filter Group business, Just Energy provides subscription-based home water filtration systems to residential customers, including under-counter and whole-home water filtration solutions. Just Energy markets its product offerings through multiple sales channels including digital, retail, door-to-door, brokers and affinity relationships. In March 2019, Just Energy formally approved and commenced a process to dispose of its businesses in Germany, Ireland and Japan. In June 2019, Just Energy also formally approved and commenced a process to dispose of its business in the United Kingdom (“U.K.”), as part of the Company’s Strategic Review. The decision was part of a strategic transition to focus on the core business in North America. The U.K. and Ireland businesses were disposed of during the three months ended December 31, 2019 as described in Note 16. The disposal of operations in Japan was completed in April 2020, and the disposal of operations in Germany is expected to be completed in the near future. On November 30, 2020, the Company sold EdgePower. The disposal of these operations were reclassified and presented in discontinued operations. As at December 31, 2020, these operations were classified as a disposal group held for sale and as a discontinued operation as appropriate. Previously, these operations were reported within the Consumer segment, while a portion of the U.K. business was allocated to the Commercial segment. EdgePower was previously reported as a Commercial segment. On September 28, 2020, the Company completed a comprehensive plan to strengthen and de-risk the business, positioning the Company for sustainable growth as an independent industry leader (the “Recapitalization”). The Recapitalization was undertaken through a plan of arrangement under the Canada Business Corporations Act (“CBCA”). See further discussion in Note 9 and Note 12. |
FINANCIAL STATEMENT PRESENTATIO
FINANCIAL STATEMENT PRESENTATION | 9 Months Ended |
Dec. 31, 2020 | |
FINANCIAL STATEMENT PRESENTATION | |
FINANCIAL STATEMENT PRESENTATION - including COVID-19 impact | 3. FINANCIAL STATEMENT PRESENTATION (a) Compliance with IFRS These Interim Financial Statements have been prepared in accordance with International Accounting Standard (“IAS”) 34, Interim Financial Reporting, as issued by the International Accounting Standards Board (“IASB”), utilizing the accounting policies Just Energy outlined in its March 31, 2020 annual audited consolidated financial statements, except the adoption of new International Financial Reporting Standards (“IFRS”). Accordingly, certain information and footnote disclosures normally included in the annual audited consolidated financial statements prepared in accordance with IFRS, as issued by the IASB, have been omitted or condensed. (b) Basis of presentation and interim reporting These Interim Financial Statements should be read in conjunction with and follow the same accounting policies and methods of application as those used in the annual audited consolidated financial statements for the fiscal year ended March 31, 2020. The Interim Financial Statements are presented in Canadian dollars, the functional currency of Just Energy, and all values are rounded to the nearest thousands, except where otherwise indicated. The Interim Financial Statements are prepared on a going concern basis under the historical cost convention, except for certain financial assets and liabilities that are stated at fair value. The interim operating results are not necessarily indicative of the results that may be expected for the full fiscal year ending March 31, 2021, due to seasonal variations resulting in fluctuations in quarterly results. Gas consumption by customers is typically highest in October through March and lowest in April through September. Electricity consumption is typically highest in January through March and July through September and lowest in October through December and April through June. Certain figures in the comparative consolidated financial statements have been reclassified from statements previously presented to conform to the presentation of the current period’s Interim Financial Statements. Please refer to Note 4. (c) Going concern Due to the extreme cold weather throughout the State of Texas, the Company’s ability to continue as a going concern for the next 12 months is dependent on the Company meeting the potential liquidity challenges and potential non-compliance with debt covenants from this event. Commencing on or about February 13, 2021 continuing through February 19, 2021, extreme cold weather caused increases in power demand from higher customer consumption. The increased demand and the rolling blackouts or forced outages demanded by the Electric Reliability Council of Texas (ERCOT) caused the Company to have to balance power supply at very high clearing prices. While the total impact of the weather event is uncertain at this time, based on currently available information the Company estimates substantial losses could be incurred. The total impact may also be impacted by ERCOT final settlement data, impacts of customer credit losses, any state government or regulatory actions, or potential litigation with respect thereto. There can be no assurance that the Company will be able to address these challenges with its stakeholders or otherwise, and any inability or failure of the Company to appropriately address such challenges could materially and adversely impact the business, operations, financial condition and operating results of the Company. The Company may have further discussions with market participants, including existing stakeholders, regarding any further sources of financing. These material uncertainties may cast significant doubt upon the Company’s ability to continue as a going concern and, accordingly, the ultimate appropriateness of the use of accounting principles applicable to a going concern. These Interim Financial Statements do not reflect the adjustments to carrying values of assets and liabilities and the reported expenses and statements of financial position classifications that would be necessary if the going concern assumption was deemed inappropriate. These adjustments could be material (d) Principles of consolidation The Interim Financial Statements include the accounts of Just Energy and its directly or indirectly owned subsidiaries and affiliates as at December 31, 2020. Subsidiaries and affiliates are consolidated from the date of acquisition and control and continue to be consolidated until the date that such control ceases. The financial statements of the subsidiaries and affiliates are prepared for the same reporting period as Just Energy using consistent accounting policies. All intercompany balances, sales, expenses and unrealized gains and losses resulting from intercompany transactions are eliminated on consolidation. (e) Significant accounting judgments, estimates, and assumptions The preparation of the Interim Financial Statements requires the use of estimates and assumptions to be made in applying the accounting policies that affect the reported amount of assets, liabilities, income and expenses. The estimates and related assumptions based on previous experience and other factors are considered reasonable under the circumstances, the results of which form the basis for making the assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. There have been no material changes from the disclosures from the Company’s Audited Financial Statements and Notes for the year ended March 31, 2020 with respect to significant accounting judgments, estimates and assumptions. COVID‑19 impact As a result of the continued and uncertain economic and business impact of the coronavirus disease (“COVID‑19”) pandemic, Just Energy has reviewed the estimates, judgments and assumptions used in the preparation of the Interim Financial Statements, including with respect to: the determination of whether indicators of impairment exist for the assets and cash-generating units (“CGUs”) and the underlying assumptions used in the measurement of the recoverable amount of such assets or CGUs. Just Energy has also assessed the impact of the COVID‑19 pandemic on the estimates and judgments used in connection with the measurement of deferred income tax assets and the credit risk of Just Energy’s customers. Although Just Energy determined that no significant revisions to such estimates, judgments or assumptions were required for the period ended December 31, 2020, revisions may be required in future periods to the extent that the negative impacts on the business arising from the COVID‑19 pandemic continue or worsen. Any such revision (due to the COVID‑19 pandemic or otherwise) may result in, among other things, write-downs or impairments to the assets or CGUs, and/or adjustments to the carrying amount of the accounts receivable, goodwill or to the valuation of the deferred income tax assets, any of which could have a material impact on the results of operations and financial condition. While Just Energy believes the COVID‑19 pandemic to be temporary, the situation is dynamic and the impact of the COVID‑19 pandemic on the Company’s results of operations and financial condition, including the duration and the impact on overall customer demand, cannot be reasonably estimated at this time. |
ACCOUNTING POLICIES AND NEW STA
ACCOUNTING POLICIES AND NEW STANDARDS ADOPTED | 9 Months Ended |
Dec. 31, 2020 | |
ACCOUNTING POLICIES AND NEW STANDARDS ADOPTED | |
ACCOUNTING POLICIES AND NEW STANDARDS ADOPTED | 4. ACCOUNTING POLICIES AND NEW STANDARDS ADOPTED Adoption of International Financial Reporting Interpretations Committee (“IFRIC”) Agenda Decision 11, Physical Settlement of Contracts to Buy or Sell a Non-Financial Item (“Agenda Decision 11”) The IFRIC reached a decision on Agenda Decision 11 during its meeting on March 5 and 6, 2019. The decision was in respect to a request about how an entity applies IFRS 9 to particular contracts to buy or sell a non-financial item at a fixed price. The Company reviewed the agenda decision and determined that a change was required in its accounting policy related to contracts to buy or sell a non-financial item that can be settled net in cash or another financial instrument, or by exchanging financial instruments. These are contracts the Company enters into that are accounted for as derivatives at fair value through profit or loss but physically settled by the underlying non-financial item. The IFRIC concluded that IFRS 9 neither permits nor requires an entity to reverse the accumulated gain or loss previously recognized on the derivative and recognize a corresponding adjustment to cost of goods sold or inventory when the contract is physically settled. The presentation of the interim condensed consolidated statements of income (loss) has been amended to comply with the IFRIC agenda decision. Prior to the adoption of Agenda Decision 11, realized gains and losses on financial swap contracts and options were included in cost of goods sold. Upon adoption of Agenda Decision 11, realized gains and losses on financial swap contracts are recorded in the line item realized loss on derivative instruments. As a result of Agenda Decision 11, the amount of cost of goods sold previously reported for the three months ended December 31, 2019, has decreased by $69.5 million from $516.0 million previously reported, to $446.6 million, upon the adoption of IFRIC Agenda Decision 11 with an increase in realized losses on derivatives. The amount of cost of goods sold previously reported for the nine months ended December 31, 2019, has increased from $1,667.0 million previously reported, to $1,748.3 million, upon the adoption of IFRIC Agenda Decision 11 with a decrease in realized losses on derivatives. |
TRADE AND OTHER RECEIVABLES, NE
TRADE AND OTHER RECEIVABLES, NET | 9 Months Ended |
Dec. 31, 2020 | |
TRADE AND OTHER RECEIVABLES, NET | |
TRADE AND OTHER RECEIVABLES, NET | 5. TRADE AND OTHER RECEIVABLES, NET (a) Trade and other receivables, net As at As at Dec. 31, 2020 March 31, 2020 Trade accounts receivable, net $ 169,360 $ 241,969 Accrued gas receivables 2,118 7,224 Unbilled revenues, net 113,529 121,993 Commodity receivables and other 59,073 32,721 $ 344,080 $ 403,907 ( b) Aging of accounts receivable Customer credit risk The lifetime expected credit loss reflects Just Energy’s best estimate of losses on the accounts receivable and unbilled revenue balances. Just Energy determines the lifetime expected credit loss by using historical loss rates and forward-looking factors, if applicable. Just Energy is exposed to customer credit risk on its continuing operations in Alberta, Texas, Illinois (gas), California and Ohio (electricity). Credit review processes have been implemented to perform credit evaluations of customers and manage customer default. If a significant number of customers were to default on their payments, it could have a material adverse effect on the operations and cash flows of Just Energy. Management factors default from credit risk in its margin expectations for all of the above markets. In the remaining markets, the local distribution companies (“LDCs”) provide collection services and assume the risk of any bad debts owing from Just Energy’s customers for a fee that is recorded in cost of goods sold. Management believes that the risk of the LDCs failing to deliver payment to Just Energy is minimal. There is no assurance that the LDCs providing these services will continue to do so in the future. The aging of the trade accounts receivable from the markets where the Company bears customer credit risk was as follows: As at As at Dec. 31, 2020 March 31, 2020 Current $ 64,195 $ 83,431 1–30 days 11,914 26,678 31–60 days 3,134 6,513 61–90 days 3,169 5,505 Over 90 days 15,698 35,252 $ 98,110 $ 157,379 (c) Allowance for doubtful accounts Changes in the allowance for doubtful accounts related to the balances in the table above were as follows: As at As at Dec. 31, 2020 March 31, 2020 Balance, beginning of period $ 45,832 $ 182,365 Provision for doubtful accounts 26,959 80,050 Bad debts written off (48,855) (138,514) Foreign exchange 4,625 3,124 Assets classified as held for sale — (81,193) Balance, end of period $ 28,561 $ 45,832 Allowance for doubtful accounts on accounts receivable $ 25,583 $ 43,127 Allowance for doubtful accounts on unbilled revenue 2,978 2,705 Total allowance for doubtful accounts $ 28,561 $ 45,832 |
OTHER CURRENT AND NON-CURRENT A
OTHER CURRENT AND NON-CURRENT ASSETS | 9 Months Ended |
Dec. 31, 2020 | |
OTHER CURRENT AND NON-CURRENT ASSETS | |
OTHER CURRENT AND NON-CURRENT ASSETS | 6. OTHER CURRENT AND NON-CURRENT ASSETS As at As at (a) Other current assets Dec. 31, 2020 March 31, 2020 Prepaid expenses and deposits $ 18,531 $ 55,972 Customer acquisition costs 51,384 77,939 Green certificates assets 64,214 63,728 Gas delivered in excess of consumption 5,778 2,393 Inventory 3,238 3,238 $ 143,145 $ 203,270 As at As at (b) Other non-current assets Dec. 31, 2020 March 31, 2020 Customer acquisition costs $ 26,030 $ 43,686 Other long-term assets 7,784 12,764 $ 33,814 $ 56,450 |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended |
Dec. 31, 2020 | |
FINANCIAL INSTRUMENTS | |
FINANCIAL INSTRUMENTS | 7. FINANCIAL INSTRUMENTS (a) Fair value of derivative financial instruments and other The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., an exit price). Management has estimated the value of financial swaps, physical forwards and option contracts for electricity, natural gas, carbon and renewable energy certificates, and generation and transmission capacity contracts using a discounted cash flow method, which employs market forward curves that are either directly sourced from third parties or developed internally based on third-party market data. These curves can be volatile, thus leading to volatility in the mark to market with no immediate impact to cash flows. Gas options and green power options have been valued using the Black option pricing model using the applicable market forward curves and the implied volatility from other market traded options. Management periodically uses non-exchange-traded swap agreements based on cooling degree days (“CDDs”) and heating degree days (“HDDs”) measured in its utility service territories to reduce the impact of weather volatility on Just Energy’s electricity volumes, commonly referred to as “weather derivatives”. The fair value of these swaps on a given measurement station indicated in the derivative contract is determined by calculating the difference between the agreed strike and expected variable observed at the same station. The following table illustrates unrealized gains (losses) related to Just Energy’s derivative financial instruments classified as fair value through profit or loss and recorded on the interim condensed consolidated statements of financial position as fair value of derivative financial assets and fair value of derivative financial liabilities, with their offsetting values recorded in unrealized loss in fair value of derivative instruments and other on the interim condensed consolidated statements of income (loss). Three months Three months Nine months Nine months ended ended ended ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, Physical forward contracts and options (i) $ (58,098) $ 20,651 $ (124,865) $ (108,787) Financial swap contracts and options (ii) (19,349) 3,320 51,316 (39,994) Foreign exchange forward contracts (6,060) (1,804) (15,139) (106) Share swap — 2,188 — (4,839) Unrealized foreign exchange on 10.25% loan 13,649 — 13,649 — Unrealized foreign exchange on the 6.5% convertible bond and 8.75% loan transferred to realized foreign exchange resulting from the Recapitalization — 5,554 — 8,029 Weather derivatives (iii) (547) 6,576 (1,159) (4,362) Other derivative options (1,153) 505 (2,979) 10,512 Unrealized gain (loss) of derivative instruments and other $ (71,558) $ 36,990 $ (79,177) $ (139,547) The following table summarizes certain aspects of the fair value of derivative financial assets and liabilities recorded in the interim condensed consolidated statement of financial position as at December 31, 2020: Financial Financial Financial Financial assets assets liabilities liabilities (current) (non-current) (current) (non-current) Physical forward contracts and options (i) $ 14,975 $ 12,585 $ 84,147 $ 124,423 Financial swap contracts and options (ii) 3,831 7,201 21,346 6,592 Foreign exchange forward contracts — — 3,494 4,091 Weather derivatives (iii) 7,478 — 547 642 Other derivative options 2,912 285 632 581 As at December 31, 2020 $ 29,196 $ 20,071 $ 110,166 $ 136,329 The following table summarizes certain aspects of the fair value of derivative financial assets and liabilities recorded in the consolidated statement of financial position as at March 31, 2020: Financial Financial Financial Financial assets assets liabilities liabilities (current) (non-current) (current) (non-current) Physical forward contracts and options (i) $ 24,549 $ 17,673 $ 57,461 $ 51,836 Financial swap contracts and options (ii) 6,915 1,492 53,917 24,432 Foreign exchange forward contracts 4,519 3,036 — — Weather derivatives (iii) — — 280 — Other derivative options 370 6,591 1,780 — As at March 31, 2020 $ 36,353 $ 28,792 $ 113,438 $ 76,268 Below is a summary of the financial instruments classified through profit or loss as at December 31, 2020, to which Just Energy has committed: (i) Physical forward contracts and options consist of: · Electricity contracts with a total remaining volume of 26,332,493 MWh, a weighted average price of $46.10/MWh and expiry dates up to December 31, 2029. · Natural gas contracts with a total remaining volume of 80,627,146 GJs, a weighted average price of $2.64/GJ and expiry dates up to October 31, 2025. · Renewable energy certificates (“RECs”) with a total remaining volume of 2,524,443 MWh, a weighted average price of $44.11 /REC and expiry dates up to December 31, 2029. · Electricity generation capacity contracts with a total remaining volume of 3,040 MWCap, a weighted average price of $4,796.40 /MWCap and expiry dates up to May 31, 2024. · Ancillary contracts with a total remaining volume of 963,600 MWh, a weighted average price of $16.98/MWh and expiry dates up to December 31, 2022. (i) Financial swap contracts and options consist of: · Electricity contracts with a total remaining volume of 15,457,778 MWh, a weighted average price of $40.53/MWh and expiry dates up to December 31, 2024. · Natural gas contracts with a total remaining volume of 107,841,936 GJs, a weighted average price of $3.19/GJ and expiry dates up to December 31, 2025. · Ancillary contracts with a total remaining volume of 87,600 MWh, a weighted average price of $16.23/MWh and expiry dates up to December 31, 2021. (iii) Weather derivatives consist of: · HDD collar options with HDD strikes set at 0.8 to 1.32 degree day wide, total tick size of $12,500 per HDD and an expiry date of March 31, 2021. · HDD natural gas swaps with price strikes ranging from US $2.19 to US $6.94/ MmBTU and temperature strikes from 1,051 to 5,059 HDD and an expiry date of March 31, 2021. · HDD natural gas swaps with price strikes to be set on futures index and temperature strikes from 1,051 to 5,059 HDD and an expiry date of March 31, 2022. · HDD natural gas swaps with price strikes to be set on futures index and temperature strikes from 1,051 to 5,059 HDD and an expiry date of March 31, 2023. · Put options for HDDs with temperature strikes at historical averages, total tick size of $11,600 per HDD and an expiry date of March 31, 2021 Share swap agreement Just Energy had entered into a share swap agreement to manage the volatility associated with the Company’s restricted share grants and deferred share grants plans. The value, on inception, of the 2,500,000 shares under this share swap agreement was approximately $33.8 million. On August 22, 2018, Just Energy reduced the notional value of the share swap to $23.8 million through a payment of $10.0 million and renewed the share swap agreement. On March 31, 2020, the share swap agreement expired and settled. Net monthly settlements received (paid) under the share swap agreement were recorded in other income (expense) in the interim condensed consolidated statement of income (loss). These derivative financial instruments create a credit risk for Just Energy since they have been transacted with a limited number of counterparties. Should any counterparty be unable to fulfill its obligations under the contracts, Just Energy may not be able to realize the financial assets’ balance recognized in the Interim Financial Statements. Fair value (“FV”) hierarchy of derivatives Level 1 The fair value measurements are classified as Level 1 in the FV hierarchy if the fair value is determined using quoted unadjusted market prices. Currently there are no derivatives carried in this level. Level 2 Fair value measurements that require observable inputs other than quoted prices in Level 1, either directly or indirectly, are classified as Level 2 in the FV hierarchy. This could include the use of statistical techniques to derive the FV curve from observable market prices. However, in order to be classified under Level 2, significant inputs must be directly or indirectly observable in the market. Just Energy values its New York Mercantile Exchange (“NYMEX”) financial gas fixed-for-floating swaps under Level 2. Level 3 Fair value measurements that require unobservable market data or use statistical techniques to derive forward curves from observable market data and unobservable inputs are classified as Level 3 in the FV hierarchy. For the power supply contracts, Just Energy uses quoted market prices as per available market forward data and applies a price-shaping profile to calculate the monthly prices from annual strips and hourly prices from block strips for the purposes of mark to market calculations. The profile is based on historical settlements with counterparties or with the system operator and is considered an unobservable input for the purposes of establishing the level in the FV hierarchy. For the natural gas supply contracts, Just Energy uses three different market observable curves: (i) Commodity (predominately NYMEX), (ii) Basis and (iii) Foreign exchange. NYMEX curves extend for over five years (thereby covering the length of Just Energy’s contracts); however, most basis curves extend only 12 to 15 months into the future. In order to calculate basis curves for the remaining years, Just Energy uses extrapolation, which leads natural gas supply contracts to be classified under Level 3. Weather derivatives are non-exchange-traded financial instruments used as part of a risk management strategy to mitigate the impact adverse weather conditions have on gross margin. The fair values of the derivatives are determined using an internally developed model that relies upon both observable inputs and significant unobservable inputs. Accordingly, the fair values of these derivatives are classified as Level 3. Market and contractual inputs to these models vary by contract type and would typically include notional amounts, reference weather stations, strike prices, temperature strike values, terms to expiration, historical weather data and historical commodity prices. The historical weather data and commodity prices were utilized to value the expected payouts with respect to weather derivatives and, as a result, are the most significant assumptions contributing to the determination of fair value estimates, and changes in these inputs can result in a significantly higher or lower fair value measurement. For the share swap agreement, Just Energy used a forward interest rate curve along with a volume weighted average share price to model out its value. As the inputs had no observable market, it was classified as Level 3. Just Energy’s accounting policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. Fair value measurement input sensitivity The main cause of changes in the fair value of derivative instruments is changes in the forward curve prices used for the fair value calculations. Just Energy provides a sensitivity analysis of these forward curves under the “Market risk” section of this note. Other inputs, including volatility and correlations, are driven off historical settlements. The following table illustrates the classification of derivative financial assets (liabilities) in the FV hierarchy as at December 31, 2020: Level 1 Level 2 Level 3 Total Derivative financial assets $ — $ — $ 49,267 $ 49,267 Derivative financial liabilities — (8,104) (238,391) (246,495) Total net derivative financial liabilities $ — $ (8,104) $ (189,124) $ (197,228) The following table illustrates the classification of derivative financial assets (liabilities) in the FV hierarchy as at March 31, 2020: Level 1 Level 2 Level 3 Total Derivative financial assets $ — $ — $ 65,145 $ 65,145 Derivative financial liabilities — (38,676) (151,030) (189,706) Total net derivative financial liabilities $ — $ (38,676) $ (85,885) $ (124,561) Commodity price sensitivity – Level 3 derivative financial instruments If the energy prices associated with only Level 3 derivative financial instruments including natural gas, electricity, verified emission-reduction credits and RECs had risen (fallen) by 10%, assuming that all of the other variables had remained constant, profit (loss) before income taxes for the three month period ended December 31,2020 would have increased (decreased) by $142.6 million ($141.7 million), primarily as a result of the change in fair value of Just Energy’s derivative financial instruments. A key assumption used when determining the significant unobservable inputs included in Level 3 of the FV hierarchy consists of up to 5% price extrapolation to calculate monthly prices that extend beyond the market observable 12‑ to 15‑month forward curve. The following table illustrates the changes in net fair value of financial liabilities classified as Level 3 in the FV hierarchy for the following periods: Nine months ended Year ended December 31, 2020 March 31, 2020 Balance, beginning of period $ (85,885) $ 17,310 Total losses (100,714) (3,822) Purchases (41,180) (43,663) Sales 291 14,549 Settlements 38,364 (70,259) Balance, end of period $ (189,124) $ (85,885) (b) Classification of non-derivative financial assets and liabilities As at December 31, 2020 and March 31, 2020, the carrying value of cash and cash equivalents, restricted cash, trade and other receivables, and trade and other payables approximates their fair value due to their short-term nature. Long-term debt recorded at amortized cost has a fair value as at December 31, 2020 of $518.8 million (March 31, 2020 - $596.2 million. The interest payable on outstanding amounts under the senior secured credit facility is at rates that vary with bankers’ acceptances, London Interbank Offering Rate (“LIBOR”), Canadian bank prime rate or U.S. prime rate. The 10.25% term loan is classified as level 1 in the FV hierarchy. Prior to the exchange under the Recapitalization transaction, the 8.75% loan, 6.75% $100M convertible debentures, 6.75% $160M convertible debentures and 6.5% convertible bonds, were fair valued based on market value; the 6.75% $100M convertible debentures, 6.75% $160M convertible debentures and 6.5% convertible bonds were classified as Level 1 in the FV hierarchy. The risks associated with Just Energy’s financial instruments are as follows: (i) Market risk is the potential loss that may be incurred as a result of changes in the market or fair value of a particular instrument or commodity. Components of market risk to which Just Energy is exposed are discussed below. Foreign currency risk Foreign currency risk is created by fluctuations in the fair value or cash flows of financial instruments due to changes in foreign exchange rates and exposure as a result of investments in U.S. operations. The performance of the Canadian dollar relative to the U.S. dollar could positively or negatively affect Just Energy’s income, as a significant portion of Just Energy’s income is generated in U.S. dollars and is subject to currency fluctuations upon translation to Canadian dollars. Due to its growing operations in the U.S., Just Energy expects to have a greater exposure to foreign currency fluctuations in the future than in prior years. Just Energy has economically hedged between 50% and 100% of forecasted cross border cash flows that are expected to occur within the next 12 months and between 0% and 50% of certain forecasted cross border cash flows that are expected to occur within the following 13 to 24 months. The level of economic hedging is dependent on the source of the cash flows and the time remaining until the cash repatriation occurs. Just Energy may, from time to time, experience losses resulting from fluctuations in the values of its foreign currency transactions, which could adversely affect its operating results. Translation risk is not hedged. With respect to translation exposure, if the Canadian dollar had been 5% stronger or weaker against the U.S. dollar for the three months ended December 31, 2020, assuming that all the other variables had remained constant, net loss for the three months ended December 31, 2020 would have been $4.3 million lower/higher and other comprehensive income (loss) would have been $10.8 million lower/higher. Interest rate risk Just Energy is only exposed to interest rate fluctuations associated with its floating rate credit facility. Just Energy’s current exposure to interest rates does not economically warrant the use of derivative instruments. Just Energy’s exposure to interest rate risk is relatively immaterial and temporary in nature. Just Energy does not currently believe that its long-term debt exposes the Company to material interest rate risks but has set out parameters to actively manage this risk within its Risk Management Policy. A 1% increase (decrease) in interest rates would have resulted in an increase (decrease) of approximately $1.5 million in profit (loss) before income taxes for the three months ended December 31, 2020 (December 31, 2019 — $0.6 million). Commodity price risk Just Energy is exposed to market risks associated with commodity prices and market volatility where estimated customer requirements do not match actual customer requirements. Management actively monitors these positions on a daily basis in accordance with its Risk Management Policy. This policy sets out a variety of limits, most importantly thresholds for open positions in the gas and electricity portfolios, which also feed a value at risk limit. Should any of the limits be exceeded, they are closed expeditiously or express approval to continue to hold is obtained. Just Energy’s exposure to market risk is affected by a number of factors, including accuracy of estimation of customer commodity requirements, commodity prices, volatility and liquidity of markets. Just Energy enters into derivative instruments in order to manage exposures to changes in commodity prices. The derivative instruments that are used are designed to fix the price of supply for estimated customer commodity demand and thereby fix margins. Derivative instruments are generally transacted over the counter. The inability or failure of Just Energy to manage and monitor the above market risks could have a material adverse effect on the operations and cash flows of Just Energy. Just Energy mitigates the exposure to variances in customer requirements that are driven by changes in expected weather conditions through active management of the underlying portfolio, which involves, but is not limited to, the purchase of options including weather derivatives. Just Energy’s ability to mitigate weather effects is limited by the degree to which weather conditions deviate from normal. Commodity price sensitivity – all derivative financial instruments If all the energy prices associated with derivative financial instruments including natural gas, electricity, verified emission-reduction credits and RECs had risen (fallen) by 10%, assuming that all of the other variables had remained constant, profit (loss) before income taxes for the three months ended December 31, 2020 would have increased (decreased) by $141.0 million ($140.1 million), primarily as a result of the change in fair value of Just Energy’s derivative financial instruments. For information on credit risk, refer to Note 5. (ii) Just Energy purchases the majority of the gas and electricity delivered to its customers through long-term contracts entered into with various suppliers. Just Energy has an exposure to supplier risk as the ability to continue to deliver gas and electricity to its customers is reliant upon the ongoing operations of these suppliers and their ability to fulfill their contractual obligations. As at December 31, 2020, Just Energy has applied an adjustment factor to determine the fair value of its financial instruments in the amount of $12.3 million (March 31, 2020 — $23.8 million) to accommodate for its counterparties’ risk of default. (iii) Counterparty credit risk represents the loss that Just Energy would incur if a counterparty fails to perform under its contractual obligations. This risk would manifest itself in Just Energy replacing contracted supply at prevailing market rates, thus impacting the related customer margin. Counter party limits are established within the Risk Management Policy. Any exceptions to these limits require approval from the Risk Committee of the Board of Directors of Just Energy. The Risk Department and Risk Committee monitor current and potential credit exposure to individual counterparties and also monitor overall aggregate counterparty exposure. However, the failure of a counterparty to meet its contractual obligations could have a material adverse effect on the operations and cash flows of Just Energy. As at December 31, 2020, the estimated counterparty credit risk exposure amounted to $49.3 million (March 31, 2020 - $65.1 million), representing the risk relating to Just Energy’s exposure to derivatives that are in an asset position. |
TRADE AND OTHER PAYABLES
TRADE AND OTHER PAYABLES | 9 Months Ended |
Dec. 31, 2020 | |
TRADE AND OTHER PAYABLES | |
TRADE AND OTHER PAYABLES | 8. TRADE AND OTHER PAYABLES As at As at Dec. 31, 2020 March 31, 2020 Commodity suppliers' accruals and payables $ 288,059 $ 414,581 Green provisions and repurchase obligations 74,124 103,245 Sales tax payable 25,460 19,706 Non-commodity trade accruals and accounts payable 56,920 117,473 Current portion of payable to former joint venture partner 12,539 18,194 Accrued gas payable 877 3,295 Other payables 14,784 9,171 $ 472,763 $ 685,665 |
LONG-TERM DEBT AND FINANCING
LONG-TERM DEBT AND FINANCING | 9 Months Ended |
Dec. 31, 2020 | |
LONG-TERM DEBT AND FINANCING | |
LONG-TERM DEBT AND FINANCING | 9. LONG-TERM DEBT AND FINANCING As at As at Maturity Dec. 31, 2020 March 31, 2020 Senior secured credit facility (a) December 31, 2023 $ 232,619 $ 236,389 Less: Debt issue costs (a) (4,273) (1,644) Filter Group financing (b) October 25, 2023 5,485 9,690 7.0% $13M subordinated notes (c) September 27, 2026 13,393 — Less: Debt issue costs (c) (1,934) — 10.25% term loan (d) March 31, 2024 273,478 — 8.75% loan (e) — 280,535 6.75% $100M convertible debentures (f) — 90,187 6.75% $160M convertible debentures (g) — 153,995 6.5% convertible bonds (h) — 12,851 518,768 782,003 Less: Current portion (3,535) (253,485) $ 515,233 $ 528,518 Future annual minimum principal repayments are as follows: Less than More than 1 year 1–3 years 4–5 years 5 years Total Senior secured credit facility (a) $ — $ 232,619 $ — $ — $ 232,619 Filter Group financing (b) 3,535 1,950 — — 5,485 7.0% $13M subordinated notes (c) — — — 13,393 13,393 10.25% term loan (d) — — 273,478 — 273,478 $ 3,535 $ 234,569 $ 273,478 $ 13,393 $ 524,975 Interest is expensed based on the effective interest rate. The following table details the finance costs for the indicated periods: Three months Three months Nine months Nine months ended ended ended ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, Senior secured credit facility (a) $ 4,712 $ 5,854 $ 15,229 $ 17,900 Filter Group financing (b) 165 99 540 600 7.0% $13M subordinated notes (c) 280 — 280 — 10.25% Term Loan (d) 8,242 — 8,242 — 8.75% loan (e) — 8,655 18,055 26,275 6.75% $100M convertible debentures (f) — 2,372 4,762 7,046 6.75% $160M convertible debentures (g) — 3,462 6,948 10,354 6.5% convertible bonds (h) — 262 536 2,479 Supplier finance and others (i) 4,278 7,474 14,682 15,521 $ 17,677 $ 28,178 $ 69,274 $ 80,175 (a) As part of the Recapitalization, Just Energy extended the $335 million senior secured credit facility to December 2023, which was previously scheduled to mature in December 2020. Certain principal amounts outstanding under the letter of credit facility is guaranteed by Export Development Canada under its Account Performance Security Guarantee Program. Just Energy’s obligations under the $335 million senior secured credit facility are supported by guarantees of certain subsidiaries and affiliates and secured by a general security agreement and a pledge of the assets and securities of Just Energy and the majority of its operating subsidiaries and affiliates excluding, primarily, Filter Group and German operations. Just Energy has also entered into an inter-creditor agreement in which certain commodity and hedge providers are also secured by the same collateral. As at December 31, 2020, the Company was compliant with all of its covenants. The tables below show Just Energy’s available capacity and its scheduled mandatory commitment reductions. Senior secured credit facility as at December 31, 2020: Total commitments $ 335,000 Outstanding advances (232,619) Letters of credit outstanding (77,816) Remaining capacity $ 24,565 Scheduled mandatory commitment reductions 1 : March 31, 2021 $ 35,000 September 30, 2021 35,000 March 31, 2022 35,000 September 30, 2022 35,000 March 31, 2023 35,000 September 30, 2023 35,000 1 Under the terms of the senior secured credit facility, Just Energy is able to make use of Bankers’ Acceptances and LIBOR advances at stamping fees of 5.25%. Prime rate advances are at a rate of bank prime (Canadian bank prime rate or U.S. prime rate) plus 4.25% and letters of credit are at a rate of 5.25%. Interest rates are adjusted quarterly based on certain financial performance indicators. Prior to the Recapitalization, interest was payable on outstanding loans at rates that varied with Bankers’ Acceptance rates, LIBOR, Canadian bank prime rate or U.S. prime rate. Under the terms of the operating credit facility, Just Energy was able to make use of Bankers’ Acceptances and LIBOR advances at stamping fees of 3.750%. Prime rate advances were at a rate of bank prime (Canadian bank prime rate or U.S. prime rate) plus 2.750% and letters of credit were at a rate of 3.750%. As at December 31, 2020, the Canadian prime rate was 2.45% and the U.S. prime rate was 3.25%. As at December 31, 2020, $232.6 million has been drawn against the facility and total letters of credit outstanding as of December 31, 2020 amounted to $77.8 million (March 31, 2020 — $72.5 million). (b) Filter Group has a $5.5 million outstanding loan payable to Home Trust Company (“HTC”). The loan is a result of factoring receivables to finance the cost of rental equipment over a period of three to five years with HTC and bears interest at 8.99% per annum. Principal and interest are repayable monthly. (c) As part of the Recapitalization, Just Energy issued $15 million principal amount of 7.0% subordinated notes (“7.0% $13M subordinated notes”) to holders of the subordinated convertible debentures, which has a six-year maturity. The 7.0% subordinated notes bear an annual interest rate of 7.0% payable in-kind semi-annually on March 15 and September 15. The balance at December 31, 2020 includes an accrual of $0.2 million for capitalized interest payable on the notes. A $2.0 million fee related to the issuance of the notes was capitalized at inception to be amortized over the term of the agreement. The 7.0% $13M subordinated notes had a principal amount of $15 million as at September 28, 2020, which was reduced to $13.2 million through a tender offer for no consideration, on October 19, 2020. (d) As part of the Recapitalization, Just Energy issued a US$205.9 million principal note (the “10.25% term loan”) maturing on March 31, 2024. The note bears interest at 10.25% and payments will be capitalized into the note. The interest is capitalized on a semi-annual basis on September 30 and March 31. The balance at December 31, 2020 includes an accrual of $7.1 million for capitalized interest payable on the notes. Upon achieving certain financial measures, the Company will pay either 50% or 100% of the interest in cash at a 9.75% rate on a semi-annual basis. Certain senior debt to EBITDA ratios have been established as well as minimum EBITDA requirements for a trailing four quarter period. Voluntary prepayments are allowed within the agreement subject to a prepayment penalty of 5.0%. The 5.0% prepayment penalty is amortized as finance costs over the term of the agreement. (e) As part of the Recapitalization, the 8.75% loan was exchanged for its pro-rata share of the 10.25% term loan and 786,982 common shares. The loan had US$207.0 million outstanding plus accrued interest. (f) As part of the Recapitalization, the 6.5% $100M convertible debentures were exchanged for 3,592,069 common shares along with it’s pro-rata share of the 7.0% $13M subordinated notes and the payment of accrued interest. (g) As part of the Recapitalization, the 6.75% $160M convertible debentures were exchanged for 5,747,310 common shares along with its pro-rata share of the 7.0% $13M subordinated notes and the payment of accrued interest. (h) As part of the Recapitalization, the 6.5% convertible bonds were exchanged for its pro-rata share of the 10.25% term loan and 35,737 common shares. $9.2 million of the 6.5% convertible bonds were outstanding plus accrued interest. (i) Supplier finance and other costs for the quarter ended December 31, 2020 primarily consists of charges for extended payment terms. |
REPORTABLE BUSINESS SEGMENTS
REPORTABLE BUSINESS SEGMENTS | 9 Months Ended |
Dec. 31, 2020 | |
REPORTABLE BUSINESS SEGMENTS | |
REPORTABLE BUSINESS SEGMENTS | 10. REPORTABLE BUSINESS SEGMENTS Just Energy’s reportable segments are the Consumer segment and the Commercial segment. The chief operating decision maker monitors the operational results of the Consumer and Commercial segments for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on certain non-IFRS measures such as Base EBITDA, Base gross margin and Embedded gross margin as defined in the Company’s Management Discussion and Analysis. Transactions between segments are in the normal course of operations and are recorded at the exchange amount. Allocations made between segments for shared assets or allocated expenses are based on the number of residential customer equivalents in the respective segments. Corporate and shared services report the costs related to management oversight of the business units, public reporting and filings, corporate governance and other shared services functions. For the three months ended December 31, 2020: Corporate and Consumer Commercial shared services Consolidated Sales $ 324,002 $ 216,065 $ — $ 540,067 Cost of goods sold 197,612 162,010 — 359,622 Gross margin 126,390 54,055 — 180,445 Depreciation and amortization 4,470 876 — 5,346 Administrative expenses 8,860 4,199 17,349 30,408 Selling and marketing expenses 25,538 16,731 — 42,269 Other operating expenses 3,699 1,194 — 4,893 Segment profit for the period $ 83,823 $ 31,055 $ (17,349) $ 97,529 Finance costs (17,677) Gain on Recapitalization transaction, net 1,026 Unrealized loss of derivative instruments and other (71,558) Realized loss of derivative instruments (56,905) Other expense, net (1,431) Provision for income taxes (3,311) Loss for the period from continuing operations $ (52,327) Profit from discontinued operations 4,788 Loss for the period (47,539) Capital expenditures $ 2,947 $ 352 $ — $ 3,299 For the three months ended December 31, 2019: Corporate and Consumer Commercial shared services Consolidated Sales $ 390,757 $ 267,764 $ — $ 658,521 Cost of goods sold 254,129 192,423 — 446,552 Gross margin 136,628 75,341 — 211,969 Depreciation and amortization 6,441 758 — 7,199 Administrative expenses 8,241 5,061 26,314 39,616 Selling and marketing expenses 32,377 18,893 — 51,270 Other operating expenses 19,717 1,962 — 21,679 Segment profit for the period $ 69,852 $ 48,667 $ (26,314) $ 92,205 Finance costs (28,178) Unrealized gain of derivative instruments and other 36,990 Realized loss of derivative instruments (78,220) Other income, net 1,649 Provision for income taxes (3,845) Profit for the period from continuing operations $ 20,601 Profit from discontinued operations 6,293 Profit for the period 26,894 Capital expenditures $ 2,290 $ 626 $ — $ 2,916 For the nine months ended December 31, 2020: Corporate and Consumer Commercial shared services Consolidated Sales $ 1,098,701 $ 684,102 $ — $ 1,782,803 Cost of goods sold 632,465 480,045 — 1,112,510 Gross margin 466,236 204,057 — 670,293 Depreciation and amortization 15,608 2,690 — 18,298 Administrative expenses 27,760 14,796 69,951 112,507 Selling and marketing expenses 82,760 54,380 — 137,140 Other operating expenses 24,767 7,850 — 32,617 Segment profit for the period $ 315,341 $ 124,341 $ (69,951) $ 369,731 Finance costs (69,274) Restructuring costs (7,118) Gain on Recapitalization transaction, net 51,367 Unrealized loss of derivative instruments and other (79,177) Realized loss of derivative instruments (276,808) Other expense, net (4,488) Provision for income taxes (4,618) Loss for the period from continuing operations (20,385) Profit from discontinued operations 630 Loss for the period $ (19,755) Capital expenditures $ 7,163 $ 809 $ — $ 7,972 As at December 31, 2020 Total goodwill $ 167,997 $ 96,654 $ — $ 264,651 Total assets $ 875,850 $ 193,192 $ — $ 1,069,042 Total liabilities $ 1,247,896 $ 36,989 $ — $ 1,284,885 For the nine months ended December 31, 2019: Corporate and Consumer Commercial shared services Consolidated Sales $ 1,274,964 $ 822,162 $ — $ 2,097,126 Cost of goods sold 987,042 761,239 1,748,281 Gross margin 287,922 60,923 — 348,845 Depreciation and amortization 24,955 2,208 — 27,163 Administrative expenses 28,765 17,740 75,380 121,885 Selling and marketing expenses 108,755 58,498 — 167,253 Other operating expenses 72,070 5,252 — 77,322 Segment profit (loss) for the period $ 53,377 $ (22,775) $ (75,380) $ (44,778) Finance costs (80,175) Unrealized loss of derivative instruments and other (139,547) Realized gain of derivative instruments 78,348 Other income, net 29,734 Provision for income taxes (3,604) Loss for the period from continuing operations $ (160,022) Loss from discontinued operations (8,705) Loss for the period (168,727) Capital expenditures $ 11,546 $ 1,176 $ — $ 12,722 As at December 31, 2019 Total goodwill $ 164,799 $ 158,336 $ — $ 323,135 Total assets $ 884,560 $ 409,645 $ — $ 1,294,205 Total liabilities $ 1,349,179 $ 210,776 $ — $ 1,559,955 Sales from external customers The revenue is based on the location of the customer. Three months Three months Nine months Nine months ended ended ended ended Dec. 31, 2020 Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2019 Canada $ 79,559 $ 77,691 $ 201,597 $ 219,843 United States 460,508 580,830 1,581,206 1,877,283 Total $ 540,067 $ 658,521 $ 1,782,803 $ 2,097,126 Non-current assets Non-current assets by geographic segment consist of goodwill, property and equipment and intangible assets and are summarized as follows: As at Dec. 31, 2020 As at March 31, 2020 Canada $ 232,113 $ 233,678 United States 139,794 166,074 Total $ 371,907 $ 399,752 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
INCOME TAXES | 11. INCOME TAXES Three months Three months Nine months Nine months ended ended ended ended Dec. 31, 2020 Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2019 Current income tax expense $ 3,311 $ 2,905 $ 4,676 $ 6,417 Deferred income tax expense (recovery) - 940 (58) (2,813) Provision for (recovery of) income taxes $ 3,311 $ 3,845 $ 4,618 $ 3,604 |
SHAREHOLDERS' CAPITAL
SHAREHOLDERS' CAPITAL | 9 Months Ended |
Dec. 31, 2020 | |
SHAREHOLDERS' CAPITAL | |
SHAREHOLDERS' CAPITAL | 12. SHAREHOLDERS’ CAPITAL Just Energy is authorized to issue an unlimited number of common shares and 50,000,000 preference shares issuable in series, both with no par value. Shares outstanding have no preferences, rights or restrictions attached to them. (a) Details of issued and outstanding shareholders’ capital are as follows: Nine months ended Year ended Dec. 31, 2020 March 31, 2020 Shares Amount Shares Amount Common shares: Issued and outstanding Balance, beginning of period 4,594,371 $ 1,099,864 4,533,211 $ 1,088,538 Share-based awards exercised 91,854 929 61,160 11,326 Issuance of shares due to Recapitalization 43,392,412 438,642 — — Issuance cost — (1,572) — — Balance, end of period 48,078,637 $ 1,537,863 4,594,371 $ 1,099,864 Preferred shares: Issued and outstanding Balance, beginning of period 4,662,165 $ 146,965 4,662,165 $ 146,965 Exchanged to common shares (4,662,165) (146,965) — — Balance, end of period — $ — 4,662,165 $ 146,965 Shareholders' capital 48,078,637 $ 1,537,863 9,256,536 $ 1,246,829 The above table reflects the impacts of the Recapitalization including the extinguished convertible debentures, the settlement of the preferred shares and the issuance of new common shares. The common shares have been adjusted retrospectively to reflect the 33:1 share consolidation as part of Recapitalization (Note 12c). (b) Dividends and distributions On August 14, 2019, the Company suspended its dividend on common shares. For the quarters ended December 31, 2020 and December 31, 2019, respectively, no dividends per common share were declared by Just Energy. For the nine months ended December 31, 2020, no dividends per common share were declared by Just Energy. For the nine months ended December 31, 2019 one dividend of $0.125 per common share was declared by Just Energy resulting in a total dividend paid of $18.7 million. As a result of the dividend suspension, distributions related to the dividends also ceased. There were no distributions during the three months ended December 31, 2020, consistent with the same quarter in fiscal 2020. On December 2, 2019, the Board suspended the dividend on its Series A Preferred Shares. For the quarters ended December 31, 2020 and December 31, 2019 no dividends per preferred shares were declared by Just Energy. For the nine months ended December 31, 2020, no dividends per preferred share were declared by Just Energy. For the nine months ended December 31, 2019 dividends of $1.0625 per preferred share was declared by Just Energy resulting in a total dividend paid of $6.6 million. Under the senior secured credit facility and the 10.25% term loan, Just Energy is not allowed to pay dividends to the shareholders of Just Energy. (c) Recapitalization transaction On September 28, 2020, the Company completed a comprehensive plan to strengthen and de-risk the business, positioning the Company for sustainable growth as an independent industry leader (the “Recapitalization”). The Recapitalization was undertaken through a plan of arrangement under the CBCA and included: · The consolidation of the Company’s common shares on a 1‑for‑33 basis; · Exchange of the 6.75% $100M convertible debentures and the 6.75% $160M convertible debentures for common shares and $15 million principal amount of new subordinated notes (“7.0% $13M subordinated notes”). The 7.0% $13M subordinated notes had a principal amount of $15 million as at September 28, 2020 which was reduced to $13.2 million through a tender offer for no consideration on October 19, 2020; · Extension of $335 million of the Company’s senior secured credit facilities to December 2023, with revised covenants and a schedule of commitment reductions throughout the term; · Existing 8.75% loan and the remaining convertible bonds due December 31, 2020 were exchanged for a new term loan due March 2024 (the “10.25% term loan”) and common shares, with interest on the new term loan to be initially paid-in-kind until certain financial measures are achieved; · Exchange of all of the 8.50%, fixed-to-floating rate, cumulative, redeemable, perpetual preferred shares for common shares; · Accrued and unpaid interest paid in cash on the subordinated convertible debentures until September 28, 2020; · The payment of certain expenses of the ad hoc group of convertible debenture holders; · The issuance of approximately $3.7 million of common shares by way of an additional private placement to the Company’s term loan lenders at the same subscription price available to all securityholders pursuant to the new equity subscription offering, proceeds of which partially offset the incremental cash costs to the ad hoc group noted above; · The entitlement of holders of Just Energy’s existing 8.75% loan, 6.5% convertible bonds, the subordinated convertible debentures, preferred shares and common shares as of July 23, 2020 to subscribe for post-consolidation common shares at a price per share of $3.412, with subscriptions totaling 15,174,950 common shares resulting in cash proceeds for Just Energy of approximately $51.8 million; · Pursuant to the previously announced backstop commitments, the acquisition of 14,137,580 common shares by the backstop parties, on a post-consolidation basis resulting in cash proceeds for Just Energy of approximately $48.2 million; for a total aggregate proceeds from the equity subscription option of approximately $100.0 million, which was used to reduce debt and for general corporate purposes. In accordance with the Plan of Arrangement, the Board of Directors of Just Energy determined that the value of the equity subscription offer on September 28, 2020 was $4.868 per share; · The settlement of litigation related to the 2018 acquisition of Filter Group Inc. pursuant to which shareholders of the Filter Group received an aggregate of $1.8 million in cash and 429,958 common shares; and · The implementation of a new management equity incentive plan that will permit the granting of various types of equity awards, including stock options, share appreciation rights, restricted shares and deferred shares. The Recapitalization resulted in total net gain of $51.4 million for the nine months ended December 31, 2020. The net gain reported in the consolidated statements of income (loss) is made up of the gain of $78.8 million related to reduction in debt, partially offset by $27.4 million of expense incurred in relation to the Recapitalization, which was not capitalized. The Recapitalization did not result in tax expense or cash taxes since any debt forgiveness resulting from the exchange of the convertible debentures was fully reduced by operating and capital losses previously not used. (d) Stock based compensation Under the Company’s 2020 Equity Compensation Plan (the “Equity Plan”) approved as part of the Recapitalization, Just Energy is allowed to issue Options, Restricted Share Units (“RSUs”), Deferred Share Units (“DSUs”) and Performance Share Units (“PSUs”) for the employees and directors of the Company. Under the Equity Plan, during the three months ended December 31, 2020, 650,000 Options were issued to management on October 12, 2020 with an exercise price of $8.46. The exercise price was based on the higher of the closing price on October 9, 2020 or the 5-day volume weighted trading price as of October 9, 2020. The Company also issued an aggregate of 186,929 DSUs to the directors in lieu of materially all of their annual cash retainers based on the 5-day volume weighted trading price as of October 9, 2020 of $8.37. In addition, the Company issued 23,513 RSUs to one employee based on the 5-day volume weighted trading price as of October 9, 2020 of $8.37. |
OTHER EXPENSES
OTHER EXPENSES | 9 Months Ended |
Dec. 31, 2020 | |
OTHER EXPENSES | |
OTHER EXPENSES | 13. OTHER EXPENSES (a) Other operating expenses Three months Three months Nine months Nine months ended ended ended ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, Amortization of intangible assets $ 3,840 $ 4,953 $ 12,458 $ 19,414 Depreciation of property and equipment 1,506 2,246 5,840 7,749 Bad debt expense 3,358 19,996 26,960 66,853 Share-based compensation 1,535 1,683 5,657 10,469 $ 10,239 $ 28,878 $ 50,915 $ 104,485 (b) Employee expenses Three months Three months Nine months Nine months ended ended ended ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, Wages, salaries and commissions $ 33,459 $ 50,422 $ 112,474 $ 163,687 Benefits 3,790 5,317 11,026 16,556 $ 37,249 $ 55,739 $ 123,500 $ 180,243 For the three months ended December 31, 2020, employee expenses of $11.8 million and $25.4 million are included in administrative expense and selling and marketing expenses, respectively, compared to an amount of $18.8 million and $36.9 million, respectively, in the three months ended December 31, 2019. For the nine months ended December 31, 2020, employee expenses of $46.4 million and $77.1 million are included in administrative expense and selling and marketing expenses, respectively compared to an amount of $57.9 million and $122.3 million, respectively, in the nine months ended December 31, 2019. |
RESTRUCTURING COSTS
RESTRUCTURING COSTS | 9 Months Ended |
Dec. 31, 2020 | |
RESTRUCTURING COSTS | |
RESTRUCTURING COSTS | 14. RESTRUCTURING COSTS For the nine months ended December 31, 2020, the Company incurred $7.1 million in restructuring costs in relation to the evolution of its senior management team announced in September 2020. These include management costs, structural reorganization and employee-related costs. Approximately $2.5 million of this remains unpaid as at December 31, 2020. |
PROFIT (LOSS) PER SHARE
PROFIT (LOSS) PER SHARE | 9 Months Ended |
Dec. 31, 2020 | |
PROFIT (LOSS) PER SHARE | |
PROFIT (LOSS) PER SHARE | 15. PROFIT (LOSS) PER SHARE Three months Three months Nine months Nine months ended ended ended ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, BASIC EARNINGS (LOSS) PER SHARE Profit (loss) from continuing operations $ (52,327) $ 20,601 $ (20,385) $ (160,022) Earnings (loss) available to shareholders (47,539) 26,894 (19,755) (168,727) Basic weighted average shares outstanding 48,043,495 9,881,771 26,355,407 9,844,806 Basic earnings (loss) per share from continuing operations (1.09) 2.08 (0.77) (16.25) Basic earnings (loss) per share available to shareholders $ (0.99) $ 2.72 $ (0.75) $ (17.13) DILUTED EARNINGS (LOSS) PER SHARE Profit (loss) from continuing operations $ (52,327) $ 20,601 $ (20,385) $ (160,022) Adjusted earnings (loss) from continuing operations available to shareholders $ (47,539) $ 26,894 $ (19,755) $ (168,727) Basic weighted average shares outstanding 48,043,495 9,881,771 26,355,407 9,844,806 Dilutive effect of: Restricted share grants 3,253 76,896 44,370 118,358 Deferred share grants 187 5,618 4,296 8,163 Restricted share units 17,053 — 5,643 — Deferred share units 164,579 — 55,059 — Options 572,283 — 192,153 — Shares outstanding on a diluted basis 48,800,850 1 9,964,285 26,656,928 1 9,971,327 1 Diluted earnings (loss) from continuing operations per share available to shareholders (1.09) 2.07 (0.77) (16.25) Diluted earnings (loss) per share available to shareholders $ (0.99) $ 2.70 $ (0.75) $ (17.13) 1 The assumed settlement of shares results in an anti-dilutive position; therefore, these items have not been included in the computation of diluted earnings (loss) per share. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended |
Dec. 31, 2020 | |
DISCONTINUED OPERATIONS | |
DISCONTINUED OPERATIONS | 16. DISCONTINUED OPERATIONS In March 2019, Just Energy formally approved and commenced the process to dispose of its businesses in Germany, Ireland and Japan. In June 2019, the U.K. was added to the disposal group. The decision was part of a strategic transition to focus on the core business in North America. On November 29, 2019, Just Energy closed its previously announced sale of Hudson U.K. to Shell Energy Retail Limited. On December 29, 2020, Just Energy received £ 2.2 million in contingent consideration related to the U.K. disposition which has been included in profit from discontinued operations. On April 10, 2020, the Company announced that it has sold all of the shares of Just Energy Japan KK to Astmax Trading, Inc. The purchase price was nominal, as the business was still in its start-up phase with more liabilities than assets and had fewer than 1,000 customers. The sale of the Japanese subsidiary resulted in a loss on sale of $1.1 million primarily due to the realization of cumulative translation adjustments of exchange differences from accumulated other comprehensive income, which is included in profit (loss) from discontinued operations. As at December 31, 2020, the remaining operations were classified as discontinued operations. The tax impact on the discontinued operations is minimal. During the quarter ended December 31, 2020, Just Energy sold EdgePower resulting in a gain of $1.5 million and the results of which have been included in profit from discontinued operations. Assets and liabilities classified under discontinued operations were as follows: As at As at Dec. 31, 2020 March 31, 2020 ASSETS Current assets Cash and cash equivalents $ 1,784 $ 898 Current trade and other receivables, net 702 4,978 Income taxes recoverable 16 12 Other current assets 69 1,140 2,571 7,028 Non-current assets Property and equipment — 38 Intangible assets — 545 ASSETS CLASSIFIED AS HELD FOR SALE $ 2,571 $ 7,611 Liabilities Current liabilities Trade and other payables $ 1,690 $ 4,823 Deferred revenue 83 83 Provisions 939 — LIABILITIES ASSOCIATED WITH ASSETS CLASSIFIED AS HELD FOR SALE $ 2,712 $ 4,906 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 17. COMMITMENTS AND CONTINGENCIES Commitments for each of the next five years and thereafter are as follows: As at December 31, 2020 Less than 1 year 1–3 years 4–5 years More than 5 years Total Gas, electricity and non-commodity contracts $ 336,773 $ 1,713,758 $ 384,634 $ 105,477 $ 2,540,642 (a) Surety bonds and letters of credit Pursuant to separate arrangements with several bond agencies, Just Energy has issued surety bonds to various counterparties including states, regulatory bodies, utilities and various other surety bond holders in return for a fee and/or meeting certain collateral posting requirements. Such surety bond postings are required in order to operate in certain states or markets. Total surety bonds issued as at December 31, 2020 amounted to $46.3 million (March 31, 2020 — $63.4 million). As at December 31, 2020, Just Energy had total letters of credit outstanding in the amount of $77.8 million (Note 9(a)). (b) Legal proceedings Just Energy’s subsidiaries are party to a number of legal proceedings. Other than as set out below, Just Energy believes that each proceeding constitutes legal matters that are incidental to the business conducted by Just Energy and that the ultimate disposition of the proceedings will not have a material adverse effect on its consolidated earnings, cash flows or financial position. In March 2012, Davina Hurt and Dominic Hill filed a lawsuit against Commerce Energy Inc. (“Commerce”), Just Energy Marketing Corp. and the Company in the Ohio Federal Court claiming entitlement to payment of minimum wage and overtime under Ohio wage claim laws and the Federal Fair Labor Standards Act (“FLSA”) on their own behalf and similarly situated door-to-door sales representatives who sold for Commerce in certain regions of the United States. The Court granted the plaintiffs’ request to certify the lawsuit as a class action. Approximately 1,800 plaintiffs opted into the federal minimum wage and overtime claims, and approximately 8,000 plaintiffs were certified as part of the Ohio state overtime claims. On October 6, 2014, the jury refused to find a willful violation but concluded that certain individuals were not properly classified as outside salespeople in order to qualify for an exemption under the minimum wage and overtime requirements. On September 28, 2018, the Court issued a final judgment, opinion and order. Just Energy filed its appeal to the Court of Appeals for the Sixth Circuit on October 25, 2018. On August 31, 2020 the Appeals Court denied the appeal in a 2‑1 decision. Just Energy is planning to file a petition for certiorari seeking the United States Supreme Court review to resolve the newly created circuit split with the Court of Appeals for the Second Circuit unanimous decision in Flood v. Just Energy, 904 F.3d 219 (2d Cir. 2018) and with the inconsistency with the Supreme Court’s recent decision in Encino Motorcars, LLC v Navarro, 138 S. Ct. 1134, 1142 (2018), with broad, national, unsustainable implications for all employers who have outside sales employees. Notwithstanding Just Energy’s petition, the Company accrued approximately $6.0 million in the second quarter of fiscal 2021 in connection with this matter. In May 2015, Kia Kordestani, a former door-to-door independent contractor sales representative for Just Energy Corp., filed a lawsuit against Just Energy Corp., Just Energy Ontario L.P. and the Company (collectively referred to as “Just Energy”) in the Superior Court of Justice, Ontario, claiming status as an employee and seeking benefits and protections of the Employment Standards Act, 2000, such as minimum wage, overtime pay, and vacation and public holiday pay on his own behalf and similarly situated door-to-door sales representatives who sold in Ontario. On Just Energy’s request, Mr. Kordestani was removed as a plaintiff but replaced with Haidar Omarali, also a former door-to-door sales representative. On July 27, 2016, the Court granted Omarali’s request for certification, but refused to certify Omarali’s request for damages on an aggregate basis, and refused to certify Omarali’s request for punitive damages. Omarali’s motion for summary judgment was dismissed in its entirety on June 21, 2019. The matter is currently set for trial in November 2021. Just Energy denies the allegations and will vigorously defend against these claims. On July 23, 2019, Just Energy announced that, as part of its Strategic Review process, management identified customer enrolment and non-payment issues, primarily in Texas. In response to this announcement, and in some cases in response to this and other subsequent related announcements, putative class action lawsuits were filed in the United States District Court for the Southern District of New York, in the United States District Court for the Southern District of Texas and in the Ontario Superior Court of Justice, on behalf of investors that purchased Just Energy Group Inc. securities during various periods, ranging from November 9, 2017 through August 19, 2019. The U.S. lawsuits have been consolidated in the United States District Court for the Southern District of Texas with one lead plaintiff and the Ontario lawsuits have been consolidated with one lead plaintiff. The U.S. lawsuit seeks damages allegedly arising from violations of the United States Securities Exchange Act. The Ontario lawsuit seeks damages allegedly arising from violations of Canadian securities legislation and of common law. The Ontario lawsuit was subsequently amended to, among other things, extend the period to July 7, 2020. On September 2, 2020, pursuant to Just Energy’s plan of arrangement, the Superior Court of Justice (Ontario) ordered that all existing equity class action claimants shall be irrevocably and forever limited solely to recovery from the proceeds of the insurance policies payable on behalf of Just Energy or its directors and officers in respect of any such existing equity class action claims, and such existing equity class action claimants shall have no right to, and shall not, directly or indirectly, make any claim or seek any recoveries from any of the released parties or any of their respective current or former officers and directors in respect of any existing equity class action claims, other than enforcing their rights to be paid by the applicable insurer(s) from the proceeds of the applicable insurance policies. Just Energy denies the allegations and will vigorously defend against these claims. |
TRADE AND OTHER RECEIVABLES, _2
TRADE AND OTHER RECEIVABLES, NET (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
TRADE AND OTHER RECEIVABLES, NET | |
Schedule of the components of trade and other receivables | As at As at Dec. 31, 2020 March 31, 2020 Trade accounts receivable, net $ 169,360 $ 241,969 Accrued gas receivables 2,118 7,224 Unbilled revenues, net 113,529 121,993 Commodity receivables and other 59,073 32,721 $ 344,080 $ 403,907 |
Schedule of aging of the trade accounts receivable | As at As at Dec. 31, 2020 March 31, 2020 Current $ 64,195 $ 83,431 1–30 days 11,914 26,678 31–60 days 3,134 6,513 61–90 days 3,169 5,505 Over 90 days 15,698 35,252 $ 98,110 $ 157,379 |
Schedule of changes in the allowance for doubtful accounts | As at As at Dec. 31, 2020 March 31, 2020 Balance, beginning of period $ 45,832 $ 182,365 Provision for doubtful accounts 26,959 80,050 Bad debts written off (48,855) (138,514) Foreign exchange 4,625 3,124 Assets classified as held for sale — (81,193) Balance, end of period $ 28,561 $ 45,832 Allowance for doubtful accounts on accounts receivable $ 25,583 $ 43,127 Allowance for doubtful accounts on unbilled revenue 2,978 2,705 Total allowance for doubtful accounts $ 28,561 $ 45,832 |
OTHER CURRENT AND NON-CURRENT_2
OTHER CURRENT AND NON-CURRENT ASSETS (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
OTHER CURRENT AND NON-CURRENT ASSETS | |
Schedule of the components of other current and non-current assets | As at As at (a) Other current assets Dec. 31, 2020 March 31, 2020 Prepaid expenses and deposits $ 18,531 $ 55,972 Customer acquisition costs 51,384 77,939 Green certificates assets 64,214 63,728 Gas delivered in excess of consumption 5,778 2,393 Inventory 3,238 3,238 $ 143,145 $ 203,270 As at As at (b) Other non-current assets Dec. 31, 2020 March 31, 2020 Customer acquisition costs $ 26,030 $ 43,686 Other long-term assets 7,784 12,764 $ 33,814 $ 56,450 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
FINANCIAL INSTRUMENTS | |
Schedule of unrealized gain (loss) of derivative instruments and other | Three months Three months Nine months Nine months ended ended ended ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, Physical forward contracts and options (i) $ (58,098) $ 20,651 $ (124,865) $ (108,787) Financial swap contracts and options (ii) (19,349) 3,320 51,316 (39,994) Foreign exchange forward contracts (6,060) (1,804) (15,139) (106) Share swap — 2,188 — (4,839) Unrealized foreign exchange on 10.25% loan 13,649 — 13,649 — Unrealized foreign exchange on the 6.5% convertible bond and 8.75% loan transferred to realized foreign exchange resulting from the Recapitalization — 5,554 — 8,029 Weather derivatives (iii) (547) 6,576 (1,159) (4,362) Other derivative options (1,153) 505 (2,979) 10,512 Unrealized gain (loss) of derivative instruments and other $ (71,558) $ 36,990 $ (79,177) $ (139,547) |
Schedule of fair value of derivative financial assets and liabilities | Financial Financial Financial Financial assets assets liabilities liabilities (current) (non-current) (current) (non-current) Physical forward contracts and options (i) $ 14,975 $ 12,585 $ 84,147 $ 124,423 Financial swap contracts and options (ii) 3,831 7,201 21,346 6,592 Foreign exchange forward contracts — — 3,494 4,091 Weather derivatives (iii) 7,478 — 547 642 Other derivative options 2,912 285 632 581 As at December 31, 2020 $ 29,196 $ 20,071 $ 110,166 $ 136,329 Financial Financial Financial Financial assets assets liabilities liabilities (current) (non-current) (current) (non-current) Physical forward contracts and options (i) $ 24,549 $ 17,673 $ 57,461 $ 51,836 Financial swap contracts and options (ii) 6,915 1,492 53,917 24,432 Foreign exchange forward contracts 4,519 3,036 — — Weather derivatives (iii) — — 280 — Other derivative options 370 6,591 1,780 — As at March 31, 2020 $ 36,353 $ 28,792 $ 113,438 $ 76,268 |
Schedule of classification of derivative financial assets (liabilities) in the fair value hierarchy | The following table illustrates the classification of derivative financial assets (liabilities) in the FV hierarchy as at December 31, 2020: Level 1 Level 2 Level 3 Total Derivative financial assets $ — $ — $ 49,267 $ 49,267 Derivative financial liabilities — (8,104) (238,391) (246,495) Total net derivative financial liabilities $ — $ (8,104) $ (189,124) $ (197,228) The following table illustrates the classification of derivative financial assets (liabilities) in the FV hierarchy as at March 31, 2020: Level 1 Level 2 Level 3 Total Derivative financial assets $ — $ — $ 65,145 $ 65,145 Derivative financial liabilities — (38,676) (151,030) (189,706) Total net derivative financial liabilities $ — $ (38,676) $ (85,885) $ (124,561) |
Schedule of changes in net fair value of financial assets (liabilities) | Nine months ended Year ended December 31, 2020 March 31, 2020 Balance, beginning of period $ (85,885) $ 17,310 Total losses (100,714) (3,822) Purchases (41,180) (43,663) Sales 291 14,549 Settlements 38,364 (70,259) Balance, end of period $ (189,124) $ (85,885) |
TRADE AND OTHER PAYABLES (Table
TRADE AND OTHER PAYABLES (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
TRADE AND OTHER PAYABLES | |
Schedule of detailed information about trade and other payables | As at As at Dec. 31, 2020 March 31, 2020 Commodity suppliers' accruals and payables $ 288,059 $ 414,581 Green provisions and repurchase obligations 74,124 103,245 Sales tax payable 25,460 19,706 Non-commodity trade accruals and accounts payable 56,920 117,473 Current portion of payable to former joint venture partner 12,539 18,194 Accrued gas payable 877 3,295 Other payables 14,784 9,171 $ 472,763 $ 685,665 |
LONG-TERM DEBT AND FINANCING (T
LONG-TERM DEBT AND FINANCING (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
LONG-TERM DEBT AND FINANCING | |
Schedule of detailed information about borrowings | As at As at Maturity Dec. 31, 2020 March 31, 2020 Senior secured credit facility (a) December 31, 2023 $ 232,619 $ 236,389 Less: Debt issue costs (a) (4,273) (1,644) Filter Group financing (b) October 25, 2023 5,485 9,690 7.0% $13M subordinated notes (c) September 27, 2026 13,393 — Less: Debt issue costs (c) (1,934) — 10.25% term loan (d) March 31, 2024 273,478 — 8.75% loan (e) — 280,535 6.75% $100M convertible debentures (f) — 90,187 6.75% $160M convertible debentures (g) — 153,995 6.5% convertible bonds (h) — 12,851 518,768 782,003 Less: Current portion (3,535) (253,485) $ 515,233 $ 528,518 |
Schedule of future annual minimum principal repayments | Less than More than 1 year 1–3 years 4–5 years 5 years Total Senior secured credit facility (a) $ — $ 232,619 $ — $ — $ 232,619 Filter Group financing (b) 3,535 1,950 — — 5,485 7.0% $13M subordinated notes (c) — — — 13,393 13,393 10.25% term loan (d) — — 273,478 — 273,478 $ 3,535 $ 234,569 $ 273,478 $ 13,393 $ 524,975 |
Schedule of of finance cost | Three months Three months Nine months Nine months ended ended ended ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, Senior secured credit facility (a) $ 4,712 $ 5,854 $ 15,229 $ 17,900 Filter Group financing (b) 165 99 540 600 7.0% $13M subordinated notes (c) 280 — 280 — 10.25% Term Loan (d) 8,242 — 8,242 — 8.75% loan (e) — 8,655 18,055 26,275 6.75% $100M convertible debentures (f) — 2,372 4,762 7,046 6.75% $160M convertible debentures (g) — 3,462 6,948 10,354 6.5% convertible bonds (h) — 262 536 2,479 Supplier finance and others (i) 4,278 7,474 14,682 15,521 $ 17,677 $ 28,178 $ 69,274 $ 80,175 |
Schedule of mandatory commitment reductions | Senior secured credit facility as at December 31, 2020: Total commitments $ 335,000 Outstanding advances (232,619) Letters of credit outstanding (77,816) Remaining capacity $ 24,565 Scheduled mandatory commitment reductions 1 : March 31, 2021 $ 35,000 September 30, 2021 35,000 March 31, 2022 35,000 September 30, 2022 35,000 March 31, 2023 35,000 September 30, 2023 35,000 |
REPORTABLE BUSINESS SEGMENTS (T
REPORTABLE BUSINESS SEGMENTS (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
REPORTABLE BUSINESS SEGMENTS | |
Disclosure of operating segments | Corporate and Consumer Commercial shared services Consolidated Sales $ 324,002 $ 216,065 $ — $ 540,067 Cost of goods sold 197,612 162,010 — 359,622 Gross margin 126,390 54,055 — 180,445 Depreciation and amortization 4,470 876 — 5,346 Administrative expenses 8,860 4,199 17,349 30,408 Selling and marketing expenses 25,538 16,731 — 42,269 Other operating expenses 3,699 1,194 — 4,893 Segment profit for the period $ 83,823 $ 31,055 $ (17,349) $ 97,529 Finance costs (17,677) Gain on Recapitalization transaction, net 1,026 Unrealized loss of derivative instruments and other (71,558) Realized loss of derivative instruments (56,905) Other expense, net (1,431) Provision for income taxes (3,311) Loss for the period from continuing operations $ (52,327) Profit from discontinued operations 4,788 Loss for the period (47,539) Capital expenditures $ 2,947 $ 352 $ — $ 3,299 Corporate and Consumer Commercial shared services Consolidated Sales $ 390,757 $ 267,764 $ — $ 658,521 Cost of goods sold 254,129 192,423 — 446,552 Gross margin 136,628 75,341 — 211,969 Depreciation and amortization 6,441 758 — 7,199 Administrative expenses 8,241 5,061 26,314 39,616 Selling and marketing expenses 32,377 18,893 — 51,270 Other operating expenses 19,717 1,962 — 21,679 Segment profit for the period $ 69,852 $ 48,667 $ (26,314) $ 92,205 Finance costs (28,178) Unrealized gain of derivative instruments and other 36,990 Realized loss of derivative instruments (78,220) Other income, net 1,649 Provision for income taxes (3,845) Profit for the period from continuing operations $ 20,601 Profit from discontinued operations 6,293 Profit for the period 26,894 Capital expenditures $ 2,290 $ 626 $ — $ 2,916 Corporate and Consumer Commercial shared services Consolidated Sales $ 1,098,701 $ 684,102 $ — $ 1,782,803 Cost of goods sold 632,465 480,045 — 1,112,510 Gross margin 466,236 204,057 — 670,293 Depreciation and amortization 15,608 2,690 — 18,298 Administrative expenses 27,760 14,796 69,951 112,507 Selling and marketing expenses 82,760 54,380 — 137,140 Other operating expenses 24,767 7,850 — 32,617 Segment profit for the period $ 315,341 $ 124,341 $ (69,951) $ 369,731 Finance costs (69,274) Restructuring costs (7,118) Gain on Recapitalization transaction, net 51,367 Unrealized loss of derivative instruments and other (79,177) Realized loss of derivative instruments (276,808) Other expense, net (4,488) Provision for income taxes (4,618) Loss for the period from continuing operations (20,385) Profit from discontinued operations 630 Loss for the period $ (19,755) Capital expenditures $ 7,163 $ 809 $ — $ 7,972 As at December 31, 2020 Total goodwill $ 167,997 $ 96,654 $ — $ 264,651 Total assets $ 875,850 $ 193,192 $ — $ 1,069,042 Total liabilities $ 1,247,896 $ 36,989 $ — $ 1,284,885 Corporate and Consumer Commercial shared services Consolidated Sales $ 1,274,964 $ 822,162 $ — $ 2,097,126 Cost of goods sold 987,042 761,239 1,748,281 Gross margin 287,922 60,923 — 348,845 Depreciation and amortization 24,955 2,208 — 27,163 Administrative expenses 28,765 17,740 75,380 121,885 Selling and marketing expenses 108,755 58,498 — 167,253 Other operating expenses 72,070 5,252 — 77,322 Segment profit (loss) for the period $ 53,377 $ (22,775) $ (75,380) $ (44,778) Finance costs (80,175) Unrealized loss of derivative instruments and other (139,547) Realized gain of derivative instruments 78,348 Other income, net 29,734 Provision for income taxes (3,604) Loss for the period from continuing operations $ (160,022) Loss from discontinued operations (8,705) Loss for the period (168,727) Capital expenditures $ 11,546 $ 1,176 $ — $ 12,722 As at December 31, 2019 Total goodwill $ 164,799 $ 158,336 $ — $ 323,135 Total assets $ 884,560 $ 409,645 $ — $ 1,294,205 Total liabilities $ 1,349,179 $ 210,776 $ — $ 1,559,955 |
Disclosure of geographical areas | Three months Three months Nine months Nine months ended ended ended ended Dec. 31, 2020 Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2019 Canada $ 79,559 $ 77,691 $ 201,597 $ 219,843 United States 460,508 580,830 1,581,206 1,877,283 Total $ 540,067 $ 658,521 $ 1,782,803 $ 2,097,126 As at Dec. 31, 2020 As at March 31, 2020 Canada $ 232,113 $ 233,678 United States 139,794 166,074 Total $ 371,907 $ 399,752 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
Schedule of income taxes | Three months Three months Nine months Nine months ended ended ended ended Dec. 31, 2020 Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2019 Current income tax expense $ 3,311 $ 2,905 $ 4,676 $ 6,417 Deferred income tax expense (recovery) - 940 (58) (2,813) Provision for (recovery of) income taxes $ 3,311 $ 3,845 $ 4,618 $ 3,604 |
SHAREHOLDERS' CAPITAL (Tables)
SHAREHOLDERS' CAPITAL (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
SHAREHOLDERS' CAPITAL | |
Schedule of issued and outstanding shareholders' capital | Nine months ended Year ended Dec. 31, 2020 March 31, 2020 Shares Amount Shares Amount Common shares: Issued and outstanding Balance, beginning of period 4,594,371 $ 1,099,864 4,533,211 $ 1,088,538 Share-based awards exercised 91,854 929 61,160 11,326 Issuance of shares due to Recapitalization 43,392,412 438,642 — — Issuance cost — (1,572) — — Balance, end of period 48,078,637 $ 1,537,863 4,594,371 $ 1,099,864 Preferred shares: Issued and outstanding Balance, beginning of period 4,662,165 $ 146,965 4,662,165 $ 146,965 Exchanged to common shares (4,662,165) (146,965) — — Balance, end of period — $ — 4,662,165 $ 146,965 Shareholders' capital 48,078,637 $ 1,537,863 9,256,536 $ 1,246,829 |
OTHER EXPENSES (Tables)
OTHER EXPENSES (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
OTHER EXPENSES | |
Schedule of other operating expenses | Three months Three months Nine months Nine months ended ended ended ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, Amortization of intangible assets $ 3,840 $ 4,953 $ 12,458 $ 19,414 Depreciation of property and equipment 1,506 2,246 5,840 7,749 Bad debt expense 3,358 19,996 26,960 66,853 Share-based compensation 1,535 1,683 5,657 10,469 $ 10,239 $ 28,878 $ 50,915 $ 104,485 |
Schedule of employee expenses | Three months Three months Nine months Nine months ended ended ended ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, Wages, salaries and commissions $ 33,459 $ 50,422 $ 112,474 $ 163,687 Benefits 3,790 5,317 11,026 16,556 $ 37,249 $ 55,739 $ 123,500 $ 180,243 |
PROFIT (LOSS) PER SHARE (Tables
PROFIT (LOSS) PER SHARE (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
PROFIT (LOSS) PER SHARE | |
Schedule of profit (loss) per share | Three months Three months Nine months Nine months ended ended ended ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, BASIC EARNINGS (LOSS) PER SHARE Profit (loss) from continuing operations $ (52,327) $ 20,601 $ (20,385) $ (160,022) Earnings (loss) available to shareholders (47,539) 26,894 (19,755) (168,727) Basic weighted average shares outstanding 48,043,495 9,881,771 26,355,407 9,844,806 Basic earnings (loss) per share from continuing operations (1.09) 2.08 (0.77) (16.25) Basic earnings (loss) per share available to shareholders $ (0.99) $ 2.72 $ (0.75) $ (17.13) DILUTED EARNINGS (LOSS) PER SHARE Profit (loss) from continuing operations $ (52,327) $ 20,601 $ (20,385) $ (160,022) Adjusted earnings (loss) from continuing operations available to shareholders $ (47,539) $ 26,894 $ (19,755) $ (168,727) Basic weighted average shares outstanding 48,043,495 9,881,771 26,355,407 9,844,806 Dilutive effect of: Restricted share grants 3,253 76,896 44,370 118,358 Deferred share grants 187 5,618 4,296 8,163 Restricted share units 17,053 — 5,643 — Deferred share units 164,579 — 55,059 — Options 572,283 — 192,153 — Shares outstanding on a diluted basis 48,800,850 1 9,964,285 26,656,928 1 9,971,327 1 Diluted earnings (loss) from continuing operations per share available to shareholders (1.09) 2.07 (0.77) (16.25) Diluted earnings (loss) per share available to shareholders $ (0.99) $ 2.70 $ (0.75) $ (17.13) |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
DISCONTINUED OPERATIONS | |
Schedule of assets and liabilities classified under discontinued operations | As at As at Dec. 31, 2020 March 31, 2020 ASSETS Current assets Cash and cash equivalents $ 1,784 $ 898 Current trade and other receivables, net 702 4,978 Income taxes recoverable 16 12 Other current assets 69 1,140 2,571 7,028 Non-current assets Property and equipment — 38 Intangible assets — 545 ASSETS CLASSIFIED AS HELD FOR SALE $ 2,571 $ 7,611 Liabilities Current liabilities Trade and other payables $ 1,690 $ 4,823 Deferred revenue 83 83 Provisions 939 — LIABILITIES ASSOCIATED WITH ASSETS CLASSIFIED AS HELD FOR SALE $ 2,712 $ 4,906 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of Commitments | Less than 1 year 1–3 years 4–5 years More than 5 years Total Gas, electricity and non-commodity contracts $ 336,773 $ 1,713,758 $ 384,634 $ 105,477 $ 2,540,642 |
OPERATIONS (Details)
OPERATIONS (Details) | 9 Months Ended |
Dec. 31, 2020 | |
Fixed-price or price protected | Obligations satisfied over time | |
Operations: | |
Term to satisfy performance obligation | P5Y |
ACCOUNTING POLICIES AND NEW S_2
ACCOUNTING POLICIES AND NEW STANDARDS ADOPTED (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cost of goods sold | $ 359,622 | $ 446,552 | $ 1,112,510 | $ 1,748,281 |
Adjustment required by IFRS | ||||
Cost of goods sold | (69,500) | (69,500) | ||
Previously reported | ||||
Cost of goods sold | 516,000 | 1,667,000 | ||
Agenda Decision 11 | ||||
Cost of goods sold | $ 446,600 | $ 1,748,300 |
TRADE AND OTHER RECEIVABLES, _3
TRADE AND OTHER RECEIVABLES, NET (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
TRADE AND OTHER RECEIVABLES, NET | ||
Trade accounts receivable, net | $ 169,360 | $ 241,969 |
Accrued gas receivables | 2,118 | 7,224 |
Unbilled revenues, net | 113,529 | 121,993 |
Commodity receivables and other | 59,073 | 32,721 |
Trade and other receivables, net | $ 344,080 | $ 403,907 |
TRADE AND OTHER RECEIVABLES, _4
TRADE AND OTHER RECEIVABLES, NET - Aging (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
Aging of trade receivable: | ||
Trade and other receivables, net | $ 344,080 | $ 403,907 |
Credit risk | ||
Aging of trade receivable: | ||
Trade and other receivables, net | 98,110 | 157,379 |
Credit risk | Current | ||
Aging of trade receivable: | ||
Trade and other receivables, net | 64,195 | 83,431 |
Credit risk | 1-30 days | ||
Aging of trade receivable: | ||
Trade and other receivables, net | 11,914 | 26,678 |
Credit risk | 31-60 days | ||
Aging of trade receivable: | ||
Trade and other receivables, net | 3,134 | 6,513 |
Credit risk | 61-90 days | ||
Aging of trade receivable: | ||
Trade and other receivables, net | 3,169 | 5,505 |
Credit risk | Over 90 days | ||
Aging of trade receivable: | ||
Trade and other receivables, net | $ 15,698 | $ 35,252 |
TRADE AND OTHER RECEIVABLES, _5
TRADE AND OTHER RECEIVABLES, NET - Allowance (Details) - CAD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Mar. 31, 2020 | |
Changes in the allowance for doubtful accounts: | ||
Balance, beginning of period | $ 45,832 | $ 182,365 |
Provision for doubtful accounts | 26,959 | 80,050 |
Bad debts written off | (48,855) | (138,514) |
Foreign exchange | 4,625 | 3,124 |
Assets classified as held for sale | (81,193) | |
Balance, end of period | 28,561 | 45,832 |
Accounts receivables | ||
Changes in the allowance for doubtful accounts: | ||
Balance, beginning of period | 43,127 | |
Balance, end of period | 25,583 | 43,127 |
Unbilled revenue | ||
Changes in the allowance for doubtful accounts: | ||
Balance, beginning of period | 2,705 | |
Balance, end of period | $ 2,978 | $ 2,705 |
OTHER CURRENT AND NON-CURRENT_3
OTHER CURRENT AND NON-CURRENT ASSETS - Current (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
OTHER CURRENT AND NON-CURRENT ASSETS | ||
Prepaid expenses and deposits | $ 18,531 | $ 55,972 |
Customer acquisition costs | 51,384 | 77,939 |
Green certificates assets | 64,214 | 63,728 |
Gas delivered in excess of consumption | 5,778 | 2,393 |
Inventory | 3,238 | 3,238 |
Other current assets | $ 143,145 | $ 203,270 |
OTHER CURRENT AND NON-CURRENT_4
OTHER CURRENT AND NON-CURRENT ASSETS - Noncurrent (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
OTHER CURRENT AND NON-CURRENT ASSETS | ||
Customer acquisition costs | $ 26,030 | $ 43,686 |
Other long-term assets | 7,784 | 12,764 |
Other non-current assets | $ 33,814 | $ 56,450 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - Classified as fair value through profit or loss - Classified as fair value - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financial Instruments: | ||||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | $ (71,558) | $ 36,990 | $ (79,177) | $ (139,547) |
Forward contract | ||||
Financial Instruments: | ||||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | (58,098) | 20,651 | (124,865) | (108,787) |
Swap contract | ||||
Financial Instruments: | ||||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | (19,349) | 3,320 | 51,316 | (39,994) |
(fx) exchange forward contracts | ||||
Financial Instruments: | ||||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | (6,060) | (1,804) | (15,139) | (106) |
Equity swap | ||||
Financial Instruments: | ||||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | 2,188 | (4,839) | ||
Unrealized foreign exchange on 10.25% loan | ||||
Financial Instruments: | ||||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | 13,649 | 13,649 | ||
Unrealized Foreign Exchange on the 6.5 Percent Convertible Bond and 8.75 Percent Loan Transferred to Realized Foreign Exchange Resulting From Recapitalization [Member] | ||||
Financial Instruments: | ||||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | 5,554 | 8,029 | ||
Weather derivatives | ||||
Financial Instruments: | ||||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | (547) | 6,576 | (1,159) | (4,362) |
Other derivative options | ||||
Financial Instruments: | ||||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | $ (1,153) | $ 505 | $ (2,979) | $ 10,512 |
FINANCIAL INSTRUMENTS - Derivat
FINANCIAL INSTRUMENTS - Derivatives (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
Financial Instruments: | ||
Financial assets, current | $ 29,196 | $ 36,353 |
Financial assets, non-current | 20,071 | 28,792 |
Financial liabilities, current | 110,166 | 113,438 |
Fair value liabilities, non-current | 136,329 | 76,268 |
Classified as fair value | ||
Financial Instruments: | ||
Financial assets, current | 29,196 | 36,353 |
Financial assets, non-current | 20,071 | 28,792 |
Financial liabilities, current | 110,166 | 113,438 |
Fair value liabilities, non-current | 136,329 | 76,268 |
Classified as fair value | Forward contract | ||
Financial Instruments: | ||
Financial assets, current | 14,975 | 24,549 |
Financial assets, non-current | 12,585 | 17,673 |
Financial liabilities, current | 84,147 | 57,461 |
Fair value liabilities, non-current | 124,423 | 51,836 |
Classified as fair value | Swap contract | ||
Financial Instruments: | ||
Financial assets, current | 3,831 | 6,915 |
Financial assets, non-current | 7,201 | 1,492 |
Financial liabilities, current | 21,346 | 53,917 |
Fair value liabilities, non-current | 6,592 | 24,432 |
Classified as fair value | (fx) exchange forward contracts | ||
Financial Instruments: | ||
Financial assets, current | 4,519 | |
Financial assets, non-current | 3,036 | |
Financial liabilities, current | 3,494 | |
Fair value liabilities, non-current | 4,091 | |
Classified as fair value | Weather derivatives | ||
Financial Instruments: | ||
Financial assets, current | 7,478 | |
Financial liabilities, current | 547 | 280 |
Fair value liabilities, non-current | 642 | |
Classified as fair value | Other derivative options | ||
Financial Instruments: | ||
Financial assets, current | 2,912 | 370 |
Financial assets, non-current | 285 | 6,591 |
Financial liabilities, current | 632 | $ 1,780 |
Fair value liabilities, non-current | $ 581 |
FINANCIAL INSTRUMENTS - Hedges
FINANCIAL INSTRUMENTS - Hedges (Details) $ in Thousands, $ in Millions | 12 Months Ended | ||
Mar. 31, 2018CAD ($)shares | Dec. 31, 2020MMBTUTcfUSD ($)itemft³mJMWMWh | Aug. 22, 2018CAD ($) | |
Share Hedge | |||
Hedging: | |||
Nominal amount of hedging instrument | $ | 33.8 | 23.8 | |
Shares hedged | shares | 2,500,000 | ||
Cash outflow required to repurchase | $ | $ 10 | ||
Forward contract | 7 - 10 years | |||
Hedging: | |||
Nominal amount of hedging instrument | MWh | 26,332,493 | ||
Price of hedging instrument | MWh | 46.10 | ||
Forward contract | Natural gas | 4-5 years | |||
Hedging: | |||
Nominal amount of hedging instrument | mJ | 80,627,146 | ||
Price of hedging instrument | mJ | 2.64 | ||
Forward contract | Renewable energy certificates | 7 - 10 years | |||
Hedging: | |||
Nominal amount of hedging instrument | MWh | 2,524,443 | ||
Price of hedging instrument | MWh | 44.11 | ||
Forward contract | Capacity contracts | 4-5 years | |||
Hedging: | |||
Nominal amount of hedging instrument | MW | 3,040 | ||
Price of hedging instrument | MW | 4,796.40 | ||
Forward contract | Ancillary contract | Not later than one year | |||
Hedging: | |||
Nominal amount of hedging instrument | MWh | 963,600 | ||
Price of hedging instrument | MW | 16.98 | ||
Swap contract | Not later than one year | |||
Hedging: | |||
Nominal amount of hedging instrument | MWh | 87,600 | ||
Price of hedging instrument | MWh | 16.23 | ||
Swap contract | 4-5 years | |||
Hedging: | |||
Nominal amount of hedging instrument | MWh | 15,457,778 | ||
Price of hedging instrument | MWh | 40.53 | ||
Swap contract | Natural gas | 4-5 years | |||
Hedging: | |||
Nominal amount of hedging instrument | Tcf | 107,841,936 | ||
Price of hedging instrument | ft³ | 3.19 | ||
Weather derivatives | Natural gas | Strike | Not later than one year | Bottom of range | |||
Hedging: | |||
Nominal amount of hedging instrument | item | 2.19 | ||
Weather derivatives | Natural gas | Strike | Not later than one year | Top of range | |||
Hedging: | |||
Nominal amount of hedging instrument | MMBTU | 6.94 | ||
Weather derivatives | Natural gas | Strike | Later than one year | Bottom of range | |||
Hedging: | |||
Nominal amount of hedging instrument | item | 1,051 | ||
Weather derivatives | Natural gas | Strike | Later than one year | Top of range | |||
Hedging: | |||
Nominal amount of hedging instrument | item | 5,059 | ||
Weather derivatives | Natural gas | Strike | 3-4 years | Bottom of range | |||
Hedging: | |||
Nominal amount of hedging instrument | item | 1,051 | ||
Weather derivatives | Natural gas | Strike | 3-4 years | Top of range | |||
Hedging: | |||
Nominal amount of hedging instrument | item | 5,059 | ||
Weather derivatives | Heating degree days | Not later than one year | |||
Hedging: | |||
Nominal amount of hedging instrument | $ | 12,500 | ||
Weather derivatives | Heating degree days | Not later than one year | Bottom of range | |||
Hedging: | |||
Price of hedging instrument | item | 0.8 | ||
Weather derivatives | Heating degree days | Not later than one year | Top of range | |||
Hedging: | |||
Price of hedging instrument | item | 1.32 | ||
Weather derivatives | Heating degree days | Strike | Not later than one year | Bottom of range | |||
Hedging: | |||
Nominal amount of hedging instrument | item | 1,051 | ||
Weather derivatives | Heating degree days | Strike | Not later than one year | Top of range | |||
Hedging: | |||
Nominal amount of hedging instrument | item | 5,059 | ||
Weather derivatives | Heating degree days | Put | Not later than one year | |||
Hedging: | |||
Nominal amount of hedging instrument | $ | 11,600 |
FINANCIAL INSTRUMENTS - Classif
FINANCIAL INSTRUMENTS - Classification in FV hierarchy (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
Classification of derivative financial assets (liabilities): | ||
Derivative financial assets | $ 49,267 | $ 65,145 |
Derivative financial liabilities | (246,495) | (189,706) |
Total net derivative financial liabilities | (197,228) | (124,561) |
Level 2 of fair value hierarchy | ||
Classification of derivative financial assets (liabilities): | ||
Derivative financial liabilities | (8,104) | (38,676) |
Total net derivative financial liabilities | (8,104) | (38,676) |
Level 3 of fair value hierarchy | ||
Classification of derivative financial assets (liabilities): | ||
Derivative financial assets | 49,267 | 65,145 |
Derivative financial liabilities | (238,391) | (151,030) |
Total net derivative financial liabilities | $ (189,124) | $ (85,885) |
FINANCIAL INSTRUMENTS - Sensiti
FINANCIAL INSTRUMENTS - Sensitivity (Details) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | |
Bottom of range | ||||
Disclosure of sensitivity: | ||||
Basis curve | 12 months | |||
Top of range | ||||
Disclosure of sensitivity: | ||||
Basis curve | 15 months | |||
Long-term debt | ||||
Disclosure of sensitivity: | ||||
Financial liabilities, fair value | $ 518.8 | $ 518.8 | $ 596.2 | |
6.75% $100M convertible debentures | ||||
Disclosure of sensitivity: | ||||
Financial liabilities, fair value | $ 100 | $ 100 | ||
Interest rate | 6.75% | 6.75% | ||
6.75% $160M convertible debentures | ||||
Disclosure of sensitivity: | ||||
Financial liabilities, fair value | $ 160 | $ 160 | ||
Interest rate | 6.75% | 6.75% | ||
Level 3 of fair value hierarchy | ||||
Disclosure of sensitivity: | ||||
Percentage of extrapolation | 5.00% | 5.00% | ||
Cash flow hedges | Not later than one year | Bottom of range | ||||
Disclosure of sensitivity: | ||||
Hedge (as percent of cross border cash flow) | 50.00% | |||
Cash flow hedges | Not later than one year | Top of range | ||||
Disclosure of sensitivity: | ||||
Hedge (as percent of cross border cash flow) | 100.00% | |||
Cash flow hedges | Later than one year and not later than two years | Bottom of range | ||||
Disclosure of sensitivity: | ||||
Hedge (as percent of cross border cash flow) | 0.00% | |||
Cash flow hedges | Later than one year and not later than two years | Top of range | ||||
Disclosure of sensitivity: | ||||
Hedge (as percent of cross border cash flow) | 50.00% | |||
Commodity price risk | ||||
Disclosure of sensitivity: | ||||
Increase (decrease) due to increase, liabilities, impact on profit or loss before tax | $ 141 | |||
Increase (decrease), due to decrease, liabilities, impact on profit or loss before tax | $ 140.1 | |||
Commodity price risk | Level 3 of fair value hierarchy | ||||
Disclosure of sensitivity: | ||||
Percentage of increase, liabilities | 10.00% | 10.00% | ||
Increase (decrease) due to increase, liabilities, impact on profit or loss before tax | $ 142.6 | |||
Percentage of decrease, liabiities | 10.00% | 10.00% | 10.00% | |
Increase (decrease), due to decrease, liabilities, impact on profit or loss before tax | $ 141.7 | |||
Currency risk | ||||
Disclosure of sensitivity: | ||||
Percentage of increase, liabilities | 5.00% | 5.00% | ||
Percentage of decrease, liabiities | 5.00% | 5.00% | ||
Increase (decrease), due to decrease, recognized in profit or loss after tax | $ 4.3 | |||
Increase (decrease) due to increase, liabilities, impact on profit or loss after tax | 3.9 | |||
Increase in risk variable, impact on other comprehensive income (loss) | 10.8 | |||
Decrease in risk variable, impact on other comprehensive income (loss) | $ 9.6 | |||
Interest rate risk | ||||
Disclosure of sensitivity: | ||||
Percentage of increase, liabilities | 1.00% | 1.00% | 1.00% | |
Increase (decrease) due to increase, liabilities, impact on profit or loss before tax | $ 1.5 | $ 0.6 | ||
Percentage of decrease, liabiities | 1.00% | 1.00% | 1.00% | |
Increase (decrease), due to decrease, liabilities, impact on profit or loss before tax | $ 1.1 | $ 0.6 | ||
Supplier risk | ||||
Disclosure of sensitivity: | ||||
Financial assets, at fair value | 12.3 | $ 12.3 | 23.8 | |
Credit risk | ||||
Disclosure of sensitivity: | ||||
Counter party credit risk | $ 49.3 | $ 49.3 | $ 65.1 |
FINANCIAL INSTRUMENTS - Reconci
FINANCIAL INSTRUMENTS - Reconciliation of Level 3 Assets (Liabilities) (Details) - Level 3 of fair value hierarchy - CAD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Mar. 31, 2020 | |
Financial Instruments: | ||
Balance, beginning of period | $ 85,885 | $ 17,310 |
Total losses | (100,714) | (3,822) |
Purchases | (41,180) | (43,663) |
Sales | 291 | 14,549 |
Settlements | 38,364 | (70,259) |
Balance, end of period | $ 189,124 | $ 85,885 |
TRADE AND OTHER PAYABLES - Sche
TRADE AND OTHER PAYABLES - Schedule of Payables (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
TRADE AND OTHER PAYABLES | ||
Commodity suppliers' accruals and payables | $ 288,059 | $ 414,581 |
Green provisions and repurchase obligations | 74,124 | 103,245 |
Sales tax payable | 25,460 | 19,706 |
Non-commodity trade accruals and accounts payable | 56,920 | 117,473 |
Current portion of payable to former joint venture | 12,539 | 18,194 |
Accrued gas payable | 877 | 3,295 |
Other payables | 14,784 | 9,171 |
Trade and other current payables | $ 472,763 | $ 685,665 |
LONG-TERM DEBT AND FINANCING (D
LONG-TERM DEBT AND FINANCING (Details) $ in Thousands, $ in Millions | Sep. 28, 2020CAD ($) | Dec. 31, 2020CAD ($) | Mar. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | ||||
Borrowings: | |||||||||
Debt | $ 782,003 | $ 518,768 | |||||||
Less: Current portion | (253,485) | (3,535) | |||||||
Total non-current portion of non-current borrowings | 528,518 | 515,233 | |||||||
Filter Group | |||||||||
Borrowings: | |||||||||
Debt | $ 5,500 | ||||||||
Interest rate | 8.99% | 8.99% | |||||||
Senior secured credit facility | |||||||||
Borrowings: | |||||||||
Debt | 236,389 | $ 232,619 | |||||||
Less: Debt issue costs (a) | $ (4,273) | $ (1,644) | |||||||
Notional amount | $ 335,000 | ||||||||
Borrowings, maturity | December 31, 2023 | December 2020 | |||||||
Interest rate | 5.25% | 5.25% | |||||||
Filter Group financing | Filter Group | |||||||||
Borrowings: | |||||||||
Debt | [1] | $ 9,690 | $ 5,485 | ||||||
Borrowings, maturity | [1] | October 25, 2023 | |||||||
7.0% $13M subordinated notes | |||||||||
Borrowings: | |||||||||
Debt | $ 15,000 | 13,393 | |||||||
Less: Debt issue costs (a) | $ (2,000) | $ (1,934) | [2] | ||||||
Notional amount | $ 13 | $ 13,000 | |||||||
Borrowings, maturity | September 27, 2026 | ||||||||
Interest rate | 7.00% | 7.00% | 7.00% | ||||||
10.25 % term loan | |||||||||
Borrowings: | |||||||||
Debt | $ 205.9 | $ 273,478 | [3] | ||||||
Less: Debt issue costs (a) | $ (7,100) | ||||||||
Borrowings, maturity | [3] | March 31, 2024 | |||||||
Interest rate | 10.25% | 10.25% | |||||||
8.75% loan | |||||||||
Borrowings: | |||||||||
Debt | 280,535 | [4] | $ 207 | ||||||
Interest rate | 8.75% | 8.75% | |||||||
6.75% $100M convertible debentures | |||||||||
Borrowings: | |||||||||
Debt | $ 100,000 | 90,187 | [5] | ||||||
Notional amount | [5] | $ 100,000 | |||||||
Interest rate | [5] | 6.75% | 6.75% | ||||||
6.75% $160M convertible debentures | |||||||||
Borrowings: | |||||||||
Debt | $ 160,000 | 153,995 | [6] | ||||||
Notional amount | [6] | $ 160,000 | |||||||
Interest rate | [6] | 6.75% | 6.75% | ||||||
6.5% convertible bonds | |||||||||
Borrowings: | |||||||||
Debt | $ 12,851 | [7] | $ 9,200 | ||||||
Interest rate | [7] | 6.50% | 6.50% | ||||||
[1] | Filter Group has a $5.5 million outstanding loan payable to Home Trust Company (“HTC”). The loan is a result of factoring receivables to finance the cost of rental equipment over a period of three to five years with HTC and bears interest at 8.99% per annum. Principal and interest are repayable monthly. | ||||||||
[2] | As part of the Recapitalization, Just Energy issued $15 million principal amount of 7.0% subordinated notes (“7.0% $13M subordinated notes”) to holders of the subordinated convertible debentures, which has a six-year maturity. The 7.0% subordinated notes bear an annual interest rate of 7.0% payable in-kind semi-annually on March 15 and September 15. The balance at December 31, 2020 includes an accrual of $0.2 million for capitalized interest payable on the notes. A $2.0 million fee related to the issuance of the notes was capitalized at inception to be amortized over the term of the agreement. The 7.0% $13M subordinated notes had a principal amount of $15 million as at September 28, 2020, which was reduced to $13.2 million through a tender offer for no consideration, on October 19, 2020. | ||||||||
[3] | As part of the Recapitalization, Just Energy issued a US$205.9 million principal note (the “10.25% term loan”) maturing on March 31, 2024. The note bears interest at 10.25% and payments will be capitalized into the note. The interest is capitalized on a semi-annual basis on September 30 and March 31. The balance at December 31, 2020 includes an accrual of $7.1 million for capitalized interest payable on the notes. Upon achieving certain financial measures, the Company will pay either 50% or 100% of the interest in cash at a 9.75% rate on a semi-annual basis. Certain senior debt to EBITDA ratios have been established as well as minimum EBITDA requirements for a trailing four quarter period. Voluntary prepayments are allowed within the agreement subject to a prepayment penalty of 5.0%. The 5.0% prepayment penalty is amortized as finance costs over the term of the agreement. | ||||||||
[4] | As part of the Recapitalization, the 8.75% loan was exchanged for its pro-rata share of the 10.25% term loan and 786,982 common shares. The loan had US$207.0 million outstanding plus accrued interest. | ||||||||
[5] | As part of the Recapitalization, the 6.5% $100M convertible debentures were exchanged for 3,592,069 common shares along with it’s pro-rata share of the 7.0% $13M subordinated notes and the payment of accrued interest. | ||||||||
[6] | As part of the Recapitalization, the 6.75% $160M convertible debentures were exchanged for 5,747,310 common shares along with its pro-rata share of the 7.0% $13M subordinated notes and the payment of accrued interest. | ||||||||
[7] | As part of the Recapitalization, the 6.5% convertible bonds were exchanged for its pro-rata share of the 10.25% term loan and 35,737 common shares. $9.2 million of the 6.5% convertible bonds were outstanding plus accrued interest. |
LONG-TERM DEBT AND FINANCING -
LONG-TERM DEBT AND FINANCING - Repayments (Details) $ in Thousands | Dec. 31, 2020CAD ($) | |
Borrowings: | ||
Future annual minimum repayments | $ 524,975 | |
Senior secured credit facility | ||
Borrowings: | ||
Future annual minimum repayments | 232,619 | |
Filter Group financing | ||
Borrowings: | ||
Future annual minimum repayments | 5,485 | [1] |
7.0% $13M subordinated notes | ||
Borrowings: | ||
Future annual minimum repayments | 13,393 | [2] |
10.25 % term loan | ||
Borrowings: | ||
Future annual minimum repayments | 273,478 | [3] |
Not later than one year | ||
Borrowings: | ||
Future annual minimum repayments | 3,535 | |
Not later than one year | Filter Group financing | ||
Borrowings: | ||
Future annual minimum repayments | 3,535 | [1] |
1-3 years | ||
Borrowings: | ||
Future annual minimum repayments | 234,569 | |
1-3 years | Senior secured credit facility | ||
Borrowings: | ||
Future annual minimum repayments | 232,619 | |
1-3 years | Filter Group financing | ||
Borrowings: | ||
Future annual minimum repayments | 1,950 | [1] |
4-5 years | ||
Borrowings: | ||
Future annual minimum repayments | 273,478 | |
4-5 years | 10.25 % term loan | ||
Borrowings: | ||
Future annual minimum repayments | 273,478 | [3] |
More than 5 years | ||
Borrowings: | ||
Future annual minimum repayments | 13,393 | |
More than 5 years | 7.0% $13M subordinated notes | ||
Borrowings: | ||
Future annual minimum repayments | $ 13,393 | [2] |
[1] | Filter Group has a $5.5 million outstanding loan payable to Home Trust Company (“HTC”). The loan is a result of factoring receivables to finance the cost of rental equipment over a period of three to five years with HTC and bears interest at 8.99% per annum. Principal and interest are repayable monthly. | |
[2] | As part of the Recapitalization, Just Energy issued $15 million principal amount of 7.0% subordinated notes (“7.0% $13M subordinated notes”) to holders of the subordinated convertible debentures, which has a six-year maturity. The 7.0% subordinated notes bear an annual interest rate of 7.0% payable in-kind semi-annually on March 15 and September 15. The balance at December 31, 2020 includes an accrual of $0.2 million for capitalized interest payable on the notes. A $2.0 million fee related to the issuance of the notes was capitalized at inception to be amortized over the term of the agreement. The 7.0% $13M subordinated notes had a principal amount of $15 million as at September 28, 2020, which was reduced to $13.2 million through a tender offer for no consideration, on October 19, 2020. | |
[3] | As part of the Recapitalization, Just Energy issued a US$205.9 million principal note (the “10.25% term loan”) maturing on March 31, 2024. The note bears interest at 10.25% and payments will be capitalized into the note. The interest is capitalized on a semi-annual basis on September 30 and March 31. The balance at December 31, 2020 includes an accrual of $7.1 million for capitalized interest payable on the notes. Upon achieving certain financial measures, the Company will pay either 50% or 100% of the interest in cash at a 9.75% rate on a semi-annual basis. Certain senior debt to EBITDA ratios have been established as well as minimum EBITDA requirements for a trailing four quarter period. Voluntary prepayments are allowed within the agreement subject to a prepayment penalty of 5.0%. The 5.0% prepayment penalty is amortized as finance costs over the term of the agreement. |
LONG-TERM DEBT AND FINANCING _2
LONG-TERM DEBT AND FINANCING - Finance costs (Details) $ in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Dec. 31, 2020CAD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2019CAD ($) | Mar. 31, 2020 | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | ||
Borrowings: | ||||||||
Finance costs | $ 17,677 | $ 28,178 | $ 69,274 | $ 80,175 | ||||
Senior secured credit facility | ||||||||
Borrowings: | ||||||||
Finance costs | 4,712 | 5,854 | $ 15,229 | 17,900 | ||||
Face amount | $ 335,000 | |||||||
Maturity | December 31, 2023 | December 2020 | ||||||
Filter Group financing | ||||||||
Borrowings: | ||||||||
Finance costs | [1] | 165 | 99 | $ 540 | 600 | |||
7.0% $13M subordinated notes | ||||||||
Borrowings: | ||||||||
Finance costs | 280 | $ 280 | ||||||
Face amount | $ 13 | 13,000 | ||||||
Maturity | September 27, 2026 | |||||||
10.25 % term loan | ||||||||
Borrowings: | ||||||||
Finance costs | 8,242 | $ 8,242 | ||||||
Maturity | [2] | March 31, 2024 | ||||||
8.75% loan | ||||||||
Borrowings: | ||||||||
Finance costs | [3] | 8,655 | $ 18,055 | 26,275 | ||||
6.75% $100M convertible debentures | ||||||||
Borrowings: | ||||||||
Finance costs | [4] | 2,372 | 4,762 | 7,046 | ||||
Face amount | [4] | 100,000 | ||||||
6.75% $160M convertible debentures | ||||||||
Borrowings: | ||||||||
Finance costs | [5] | 3,462 | 6,948 | 10,354 | ||||
Face amount | [5] | $ 160,000 | ||||||
6.5% convertible bonds | ||||||||
Borrowings: | ||||||||
Finance costs | [6] | 262 | 536 | 2,479 | ||||
Supplier finance and others | ||||||||
Borrowings: | ||||||||
Finance costs | [7] | $ 4,278 | $ 7,474 | $ 14,682 | $ 15,521 | |||
[1] | Filter Group has a $5.5 million outstanding loan payable to Home Trust Company (“HTC”). The loan is a result of factoring receivables to finance the cost of rental equipment over a period of three to five years with HTC and bears interest at 8.99% per annum. Principal and interest are repayable monthly. | |||||||
[2] | As part of the Recapitalization, Just Energy issued a US$205.9 million principal note (the “10.25% term loan”) maturing on March 31, 2024. The note bears interest at 10.25% and payments will be capitalized into the note. The interest is capitalized on a semi-annual basis on September 30 and March 31. The balance at December 31, 2020 includes an accrual of $7.1 million for capitalized interest payable on the notes. Upon achieving certain financial measures, the Company will pay either 50% or 100% of the interest in cash at a 9.75% rate on a semi-annual basis. Certain senior debt to EBITDA ratios have been established as well as minimum EBITDA requirements for a trailing four quarter period. Voluntary prepayments are allowed within the agreement subject to a prepayment penalty of 5.0%. The 5.0% prepayment penalty is amortized as finance costs over the term of the agreement. | |||||||
[3] | As part of the Recapitalization, the 8.75% loan was exchanged for its pro-rata share of the 10.25% term loan and 786,982 common shares. The loan had US$207.0 million outstanding plus accrued interest. | |||||||
[4] | As part of the Recapitalization, the 6.5% $100M convertible debentures were exchanged for 3,592,069 common shares along with it’s pro-rata share of the 7.0% $13M subordinated notes and the payment of accrued interest. | |||||||
[5] | As part of the Recapitalization, the 6.75% $160M convertible debentures were exchanged for 5,747,310 common shares along with its pro-rata share of the 7.0% $13M subordinated notes and the payment of accrued interest. | |||||||
[6] | As part of the Recapitalization, the 6.5% convertible bonds were exchanged for its pro-rata share of the 10.25% term loan and 35,737 common shares. $9.2 million of the 6.5% convertible bonds were outstanding plus accrued interest. | |||||||
[7] | Supplier finance and other costs for the quarter ended December 31, 2020 primarily consists of charges for extended payment terms |
LONG-TERM DEBT AND FINANCING _3
LONG-TERM DEBT AND FINANCING - Senior Secured Credit Facility (Details) - CAD ($) $ in Thousands | Nov. 30, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Borrowings: | |||
Outstanding advances | $ (518,768) | $ (782,003) | |
Later than three months and not later than six months [member] | |||
Borrowings: | |||
Total commitments | 35,000 | ||
Later than six months and not later than one year [member] | |||
Borrowings: | |||
Total commitments | 35,000 | ||
Later than one year and not later than two years | |||
Borrowings: | |||
Total commitments | 35,000 | ||
September 30, 2022 | |||
Borrowings: | |||
Total commitments | 35,000 | ||
March 31, 2023 | |||
Borrowings: | |||
Total commitments | 35,000 | ||
Senior secured credit facility | |||
Borrowings: | |||
Total commitments | $ 30,000 | 335,000 | |
Outstanding advances | (232,619) | (236,389) | |
Letters of credit outstanding | (77,816) | $ (72,500) | |
Remaining capacity | 24,565 | ||
Senior secured credit facility | Mandatory commitment reduction | September 30, 2023 | |||
Borrowings: | |||
Total commitments | $ 35,000 | ||
Senior secured credit facility | Disposition of assets | |||
Borrowings: | |||
Total commitments | $ 500,000 |
LONG-TERM DEBT AND FINANCING _4
LONG-TERM DEBT AND FINANCING - Additional information (Details) $ in Thousands, $ in Millions | Sep. 28, 2020CAD ($) | Dec. 31, 2020CAD ($)shares | Mar. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | Oct. 19, 2020CAD ($) | Apr. 18, 2018 | ||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Total borrowings | $ 782,003 | $ 518,768 | |||||||||
Filter Group | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Interest rate | 8.99% | 8.99% | |||||||||
Total borrowings | $ 5,500 | ||||||||||
Filter Group | Bottom of range | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings, term (Year) | 3 years | ||||||||||
Filter Group | Top of range | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings, term (Year) | 5 years | ||||||||||
Senior secured credit facility | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Basis rate | 3.75% | ||||||||||
Interest rate | 5.25% | 5.25% | |||||||||
Proceeds from borrowings | $ 232,600 | ||||||||||
Total borrowings | 236,389 | $ 232,619 | |||||||||
Borrowings, letters of credit | 72,500 | 77,816 | |||||||||
Notional amount | $ 335,000 | ||||||||||
Total borrowing costs incurred | $ 4,273 | 1,644 | |||||||||
Senior secured credit facility | Bottom of range | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Total borrowings | $ 13,200 | ||||||||||
Senior secured credit facility | Libor | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Basis rate | 5.25% | 3.75% | |||||||||
Senior secured credit facility | Prime Rate | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Basis rate | 4.25% | 2.75% | |||||||||
Senior secured credit facility | Canadian bank prime rate | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Interest rate | 2.45% | 2.45% | |||||||||
Senior secured credit facility | US Prime Rate | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Interest rate | 3.25% | 3.25% | |||||||||
Senior secured credit facility | Debt agreement recapitalization [member] | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Total borrowings | $ 335,000 | ||||||||||
7.0% $13M subordinated notes | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Interest rate | 7.00% | 7.00% | 7.00% | ||||||||
Total borrowings | $ 15,000 | $ 13,393 | |||||||||
Borrowings, term (Year) | 6 years | ||||||||||
Notional amount | $ 13 | $ 13,000 | |||||||||
Total borrowing costs incurred | 2,000 | $ 1,934 | [1] | ||||||||
7.0% $13M subordinated notes | Bottom of range | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Total borrowings | $ 13,200 | ||||||||||
10.25 % term loan | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Interest rate | 10.25% | 10.25% | |||||||||
Total borrowings | $ 205.9 | $ 273,478 | [2] | ||||||||
Total borrowing costs incurred | $ 7,100 | ||||||||||
Borrowings, interest rate, if paid in cash | 9.75% | 9.75% | |||||||||
Borrowings, prepayment penalty, percentage | 5.00% | 5.00% | |||||||||
Borrowings, conversion of convertible instruments, shares issued (in shares) | shares | 786,982 | ||||||||||
8.75% loan | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Interest rate | 8.75% | 8.75% | |||||||||
Total borrowings | 280,535 | [3] | $ 207 | ||||||||
6.75% $100M convertible debentures | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Interest rate | [4] | 6.75% | 6.75% | ||||||||
Total borrowings | 100,000 | 90,187 | [4] | ||||||||
Notional amount | [4] | $ 100,000 | |||||||||
Borrowings, conversion of convertible instruments, shares issued (in shares) | shares | 3,592,069 | ||||||||||
6.75% $160M convertible debentures | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Interest rate | [5] | 6.75% | 6.75% | ||||||||
Total borrowings | $ 160,000 | 153,995 | [5] | ||||||||
Notional amount | [5] | $ 160,000 | |||||||||
Borrowings, conversion of convertible instruments, shares issued (in shares) | shares | 5,747,310 | ||||||||||
6.5% convertible bonds | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Interest rate | [6] | 6.50% | 6.50% | ||||||||
Total borrowings | $ 12,851 | [6] | $ 9,200 | ||||||||
Borrowings, conversion of convertible instruments, shares issued (in shares) | shares | 35,737 | ||||||||||
[1] | As part of the Recapitalization, Just Energy issued $15 million principal amount of 7.0% subordinated notes (“7.0% $13M subordinated notes”) to holders of the subordinated convertible debentures, which has a six-year maturity. The 7.0% subordinated notes bear an annual interest rate of 7.0% payable in-kind semi-annually on March 15 and September 15. The balance at December 31, 2020 includes an accrual of $0.2 million for capitalized interest payable on the notes. A $2.0 million fee related to the issuance of the notes was capitalized at inception to be amortized over the term of the agreement. The 7.0% $13M subordinated notes had a principal amount of $15 million as at September 28, 2020, which was reduced to $13.2 million through a tender offer for no consideration, on October 19, 2020. | ||||||||||
[2] | As part of the Recapitalization, Just Energy issued a US$205.9 million principal note (the “10.25% term loan”) maturing on March 31, 2024. The note bears interest at 10.25% and payments will be capitalized into the note. The interest is capitalized on a semi-annual basis on September 30 and March 31. The balance at December 31, 2020 includes an accrual of $7.1 million for capitalized interest payable on the notes. Upon achieving certain financial measures, the Company will pay either 50% or 100% of the interest in cash at a 9.75% rate on a semi-annual basis. Certain senior debt to EBITDA ratios have been established as well as minimum EBITDA requirements for a trailing four quarter period. Voluntary prepayments are allowed within the agreement subject to a prepayment penalty of 5.0%. The 5.0% prepayment penalty is amortized as finance costs over the term of the agreement. | ||||||||||
[3] | As part of the Recapitalization, the 8.75% loan was exchanged for its pro-rata share of the 10.25% term loan and 786,982 common shares. The loan had US$207.0 million outstanding plus accrued interest. | ||||||||||
[4] | As part of the Recapitalization, the 6.5% $100M convertible debentures were exchanged for 3,592,069 common shares along with it’s pro-rata share of the 7.0% $13M subordinated notes and the payment of accrued interest. | ||||||||||
[5] | As part of the Recapitalization, the 6.75% $160M convertible debentures were exchanged for 5,747,310 common shares along with its pro-rata share of the 7.0% $13M subordinated notes and the payment of accrued interest. | ||||||||||
[6] | As part of the Recapitalization, the 6.5% convertible bonds were exchanged for its pro-rata share of the 10.25% term loan and 35,737 common shares. $9.2 million of the 6.5% convertible bonds were outstanding plus accrued interest. |
REPORTABLE BUSINESS SEGMENTS (D
REPORTABLE BUSINESS SEGMENTS (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | |
Operating segments: | |||||
Sales | $ 540,067 | $ 658,521 | $ 1,782,803 | $ 2,097,126 | |
Cost of goods sold | 359,622 | 446,552 | 1,112,510 | 1,748,281 | |
Gross margin | 180,445 | 211,969 | 670,293 | 348,845 | |
Depreciation and amortization | 5,346 | 7,199 | 18,462 | 28,817 | |
Depreciation and amortization, including adjustments | 18,298 | 27,163 | |||
Administrative expenses | 30,408 | 39,616 | 112,507 | 121,885 | |
Selling and marketing expenses | 42,269 | 51,270 | 137,140 | 167,253 | |
Selling and marketing expense, including adjustments | 51,270 | ||||
Other operating expenses | 4,893 | 21,679 | 32,617 | 77,322 | |
Segment profit (loss) for the period | 97,529 | 92,205 | 369,731 | (44,778) | |
Finance costs | (17,677) | (28,178) | (69,274) | (80,175) | |
Restructuring costs | (7,118) | ||||
Gain on Recapitalization transaction, net | 1,026 | 51,367 | |||
Unrealized gain (loss) of derivative instruments and other (facing financial) | (71,558) | 36,990 | (79,177) | (139,547) | |
Realized gain (loss) of derivative instruments | (56,905) | (78,220) | (276,808) | 78,348 | |
Other income (expense), net | (1,431) | 1,649 | (4,488) | 29,734 | |
Provision for income taxes | 3,311 | 3,845 | 4,618 | 3,604 | |
Profit (loss) for the period from continuing operations | (52,327) | 20,601 | (20,385) | (160,022) | |
Gain (Loss) from discontinued operations | 4,788 | 6,293 | 630 | (8,705) | |
Profit (loss) for the period as reported, attributable to shareholders | (47,539) | 26,894 | (19,755) | (168,727) | |
Capital expenditures | 3,299 | 2,916 | 7,972 | 12,722 | |
Provision for income taxes | (3,311) | (3,845) | (4,618) | (3,604) | |
Other income (expense), net | (1,431) | 1,649 | (4,488) | 29,734 | |
Total goodwill | 264,651 | 323,135 | 264,651 | 323,135 | $ 272,692 |
Total assets | 1,069,042 | 1,294,205 | 1,069,042 | 1,294,205 | |
Total liabilities | 1,284,885 | 1,559,955 | 1,284,885 | 1,559,955 | |
Profit (Loss) for the period. | (47,539) | 26,894 | (19,755) | (168,727) | |
Operating segments | Consumer | |||||
Operating segments: | |||||
Sales | 324,002 | 390,757 | 1,098,701 | 1,274,964 | |
Cost of goods sold | 197,612 | 254,129 | 632,465 | 987,042 | |
Gross margin | 126,390 | 136,628 | 466,236 | 287,922 | |
Depreciation and amortization | 4,470 | 6,441 | |||
Depreciation and amortization, including adjustments | 15,608 | 24,955 | |||
Administrative expenses | 8,860 | 8,241 | 27,760 | 28,765 | |
Selling and marketing expenses | 25,538 | 82,760 | 108,755 | ||
Selling and marketing expense, including adjustments | 32,377 | ||||
Other operating expenses | 3,699 | 19,717 | 24,767 | 72,070 | |
Segment profit (loss) for the period | 83,823 | 69,852 | 315,341 | 53,377 | |
Capital expenditures | 2,947 | 2,290 | 7,163 | 11,546 | |
Total goodwill | 167,997 | 164,799 | 167,997 | 164,799 | |
Total assets | 875,850 | 884,560 | 875,850 | 884,560 | |
Total liabilities | 1,247,896 | 1,349,179 | 1,247,896 | 1,349,179 | |
Operating segments | Commercial | |||||
Operating segments: | |||||
Sales | 216,065 | 267,764 | 684,102 | 822,162 | |
Cost of goods sold | 162,010 | 192,423 | 480,045 | 761,239 | |
Gross margin | 54,055 | 75,341 | 204,057 | 60,923 | |
Depreciation and amortization | 876 | 758 | |||
Depreciation and amortization, including adjustments | 2,690 | 2,208 | |||
Administrative expenses | 4,199 | 5,061 | 14,796 | 17,740 | |
Selling and marketing expenses | 16,731 | 54,380 | 58,498 | ||
Selling and marketing expense, including adjustments | 18,893 | ||||
Other operating expenses | 1,194 | 1,962 | 7,850 | 5,252 | |
Segment profit (loss) for the period | 31,055 | 48,667 | 124,341 | (22,775) | |
Capital expenditures | 352 | 626 | 809 | 1,176 | |
Total goodwill | 96,654 | 158,336 | 96,654 | 158,336 | |
Total assets | 193,192 | 409,645 | 193,192 | 409,645 | |
Total liabilities | 36,989 | 210,776 | 36,989 | 210,776 | |
Elimination of intersegment amounts | |||||
Operating segments: | |||||
Administrative expenses | 17,349 | (26,314) | 69,951 | (75,380) | |
Segment profit (loss) for the period | $ 17,349 | $ (26,314) | $ (69,951) | $ (75,380) |
REPORTABLE BUSINESS SEGMENTS -
REPORTABLE BUSINESS SEGMENTS - Geographical Disclosure (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | |
Operating segments: | |||||
Sales | $ 540,067 | $ 658,521 | $ 1,782,803 | $ 2,097,126 | |
Non-current assets | 371,907 | 371,907 | $ 399,752 | ||
CANADA | |||||
Operating segments: | |||||
Sales | 79,559 | 77,691 | 201,597 | 219,843 | |
Non-current assets | 232,113 | 232,113 | 233,678 | ||
UNITED STATES | |||||
Operating segments: | |||||
Sales | 460,508 | $ 580,830 | 1,581,206 | $ 1,877,283 | |
Non-current assets | $ 139,794 | $ 139,794 | $ 166,074 |
INCOME TAXES (Details)
INCOME TAXES (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
INCOME TAXES | ||||
Current income tax expense | $ 3,311 | $ 2,905 | $ 4,676 | $ 6,417 |
Deferred income tax expense | 940 | (58) | (2,813) | |
Provision for (recovery of) income taxes | $ 3,311 | $ 3,845 | $ 4,618 | $ 3,604 |
SHAREHOLDERS' CAPITAL (Details)
SHAREHOLDERS' CAPITAL (Details) $ / shares in Units, $ in Thousands | Sep. 28, 2020CAD ($)$ / sharesshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2020CAD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($)shares | Dec. 31, 2020CAD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019CAD ($)$ / shares | Dec. 31, 2020CAD ($)$ / sharesshares | Oct. 19, 2020CAD ($) | Mar. 31, 2020CAD ($) | |||
Statement Line Items [Line Items] | ||||||||||||||
Par value per share (in CAD per share) | $ / shares | $ 0 | $ 0 | ||||||||||||
Number of shares issued and fully paid (in shares) | shares | 0 | 0 | 0 | |||||||||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in CAD per share) | $ / shares | $ 0.125 | |||||||||||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 18,700 | |||||||||||||
Total borrowings | $ 518,768 | $ 782,003 | ||||||||||||
Value of shares issued to term loan lenders | $ 3,700 | |||||||||||||
Post-consolidation common shares subscription, price per share (in CAD per share) | $ / shares | $ 3.412 | |||||||||||||
post-consolidation common shares subscription, shares (in shares) | shares | 15,174,950 | |||||||||||||
Proceeds from post-consolidation common shares subscription | $ 51,800 | |||||||||||||
Common stock acquired by backstop parties (in shares) | shares | 14,137,580 | |||||||||||||
Proceeds from common stock issued to backstop parties | $ 48,200 | |||||||||||||
Proceeds from the equity subscription | $ 100,000 | |||||||||||||
Equity subscription, price (in CAD per share) | $ / shares | $ 4.868 | |||||||||||||
Gains (losses) on recapitalization transaction, net | $ 1,026 | $ 51,367 | ||||||||||||
Gains (losses) on recapitalization transaction | 78,800 | |||||||||||||
Recapitalization transaction Expenses incurred | $ 27,400 | |||||||||||||
Filter Group | ||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||
Interest rate | 8.99% | 8.99% | 8.99% | |||||||||||
Total borrowings | $ 5,500 | |||||||||||||
settlement of litigation, cash payment | $ 1,800 | |||||||||||||
Settlement of litigation, common shares (in shares) | shares | 429,958 | |||||||||||||
6.75% $100M convertible debentures | ||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||
Interest rate | [1] | 6.75% | 6.75% | 6.75% | ||||||||||
Total borrowings | $ 100,000 | 90,187 | [1] | |||||||||||
Notional amount | [1] | $ 100,000 | ||||||||||||
6.75% $160M convertible debentures | ||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||
Interest rate | [2] | 6.75% | 6.75% | 6.75% | ||||||||||
Total borrowings | $ 160,000 | 153,995 | [2] | |||||||||||
Notional amount | [2] | $ 160,000 | ||||||||||||
7.0% $13M subordinated notes | ||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||
Interest rate | 7.00% | 7.00% | 7.00% | 7.00% | ||||||||||
Total borrowings | $ 15,000 | $ 13,393 | ||||||||||||
Notional amount | $ 13,000,000 | $ 13,000,000 | $ 13,000 | |||||||||||
7.0% $13M subordinated notes | Bottom of range | ||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||
Total borrowings | $ 13,200 | |||||||||||||
Senior secured credit facility | ||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||
Interest rate | 5.25% | 5.25% | 5.25% | |||||||||||
Total borrowings | $ 232,619 | 236,389 | ||||||||||||
Notional amount | $ 335,000 | |||||||||||||
Senior secured credit facility | Bottom of range | ||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||
Total borrowings | $ 13,200 | |||||||||||||
Senior secured credit facility | Debt agreement recapitalization [member] | ||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||
Total borrowings | $ 335,000 | |||||||||||||
8.75% loan | ||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||
Interest rate | 8.75% | 8.75% | 8.75% | |||||||||||
Total borrowings | $ 207,000,000 | $ 207,000,000 | $ 280,535 | [3] | ||||||||||
10.25 % term loan | ||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||
Interest rate | 10.25% | 10.25% | 10.25% | |||||||||||
Total borrowings | $ 205,900,000 | $ 205,900,000 | $ 273,478 | [4] | ||||||||||
Convertible debentures [member] | ||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||
Interest rate | 8.50% | 8.50% | 8.50% | |||||||||||
Preference shares | ||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||
Number of shares authorised (in shares) | shares | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||||
Par value per share (in CAD per share) | $ / shares | $ 0 | |||||||||||||
Dividends recognised as distributions to owners of parent | $ 0 | $ 0 | $ 0 | $ 1.0625 | ||||||||||
Ordinary shares | ||||||||||||||
Statement Line Items [Line Items] | ||||||||||||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 6,600 | |||||||||||||
Dividends recognised as distributions to owners of parent | $ 0 | |||||||||||||
[1] | As part of the Recapitalization, the 6.5% $100M convertible debentures were exchanged for 3,592,069 common shares along with it’s pro-rata share of the 7.0% $13M subordinated notes and the payment of accrued interest. | |||||||||||||
[2] | As part of the Recapitalization, the 6.75% $160M convertible debentures were exchanged for 5,747,310 common shares along with its pro-rata share of the 7.0% $13M subordinated notes and the payment of accrued interest. | |||||||||||||
[3] | As part of the Recapitalization, the 8.75% loan was exchanged for its pro-rata share of the 10.25% term loan and 786,982 common shares. The loan had US$207.0 million outstanding plus accrued interest. | |||||||||||||
[4] | As part of the Recapitalization, Just Energy issued a US$205.9 million principal note (the “10.25% term loan”) maturing on March 31, 2024. The note bears interest at 10.25% and payments will be capitalized into the note. The interest is capitalized on a semi-annual basis on September 30 and March 31. The balance at December 31, 2020 includes an accrual of $7.1 million for capitalized interest payable on the notes. Upon achieving certain financial measures, the Company will pay either 50% or 100% of the interest in cash at a 9.75% rate on a semi-annual basis. Certain senior debt to EBITDA ratios have been established as well as minimum EBITDA requirements for a trailing four quarter period. Voluntary prepayments are allowed within the agreement subject to a prepayment penalty of 5.0%. The 5.0% prepayment penalty is amortized as finance costs over the term of the agreement. |
SHAREHOLDERS' CAPITAL - Classes
SHAREHOLDERS' CAPITAL - Classes of share capital (Details) - CAD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | |
Statement Line Items [Line Items] | |||
Balance, beginning of period | $ (495,288) | ||
Balance, end of period | $ (215,843) | $ (348,825) | $ (495,288) |
Issued capital | |||
Statement Line Items [Line Items] | |||
Balance, beginning of period (in shares) | 9,256,536 | ||
Balance, beginning of period | $ 1,246,829 | ||
Balance, end of period (in shares) | 48,078,637 | 9,256,536 | |
Balance, end of period | $ 1,537,863 | $ 1,246,220 | $ 1,246,829 |
Ordinary shares | Issued capital | |||
Statement Line Items [Line Items] | |||
Balance, beginning of period (in shares) | 4,594,371 | 4,533,211 | 4,533,211 |
Balance, beginning of period | $ 1,099,864 | $ 1,088,538 | $ 1,088,538 |
Share-based awards exercised (in shares) | 91,854 | 61,160 | |
Share-based units exercised | $ 929 | 10,717 | $ 11,326 |
Issuance of shares due to Recapitalization (in shares) | 43,392,412 | ||
Issuance of shares due to Recapitalization | $ 438,642 | ||
Issuance cost | $ (1,572) | ||
Balance, end of period (in shares) | 48,078,637 | 4,594,371 | |
Balance, end of period | $ 1,537,863 | $ 1,099,255 | $ 1,099,864 |
Preference shares | Issued capital | |||
Statement Line Items [Line Items] | |||
Balance, beginning of period (in shares) | 4,662,165 | 4,662,165 | 4,662,165 |
Balance, beginning of period | $ 146,965 | $ 146,965 | $ 146,965 |
Balance, end of period (in shares) | 4,662,165 | ||
Balance, end of period | $ 146,965 | $ 146,965 | |
Exchanged to common shares (in shares) | (4,662,165) | ||
Exchanged to common shares | $ (146,965) |
SHAREHOLDERS' CAPITAL - Stock b
SHAREHOLDERS' CAPITAL - Stock based compensation (Details) | Oct. 09, 2020USD ($)item$ / shares | Dec. 31, 2020USD ($)$ / shares |
Stock options | Management | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of options issued | $ | 650,000 | |
Exercise price | $ / shares | $ 8.46 | |
Number of other equity instruments issued | item | 5 | |
DSU's | Director [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of options issued | $ | 186,929 | |
Number of other equity instruments issued | item | 5 | |
Exercise price | $ / shares | $ 8.37 | |
RSU's | Employee | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of options issued | $ | 23,513 | |
Number of other equity instruments issued | item | 5 | |
Exercise price | $ / shares | $ 8.37 |
OTHER EXPENSES - Other operatin
OTHER EXPENSES - Other operating expenses (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other operating expenses: | ||||
Depreciation | $ 1,506 | $ 2,246 | $ 5,840 | $ 7,749 |
Bad debt expense | 3,358 | 19,996 | 26,960 | 66,853 |
Share-based compensation | 1,535 | 1,683 | 5,657 | 10,469 |
Other operating expenses | 10,239 | 28,878 | 50,915 | 104,485 |
Other intangible assets | ||||
Other operating expenses: | ||||
Other operating expenses | $ 3,840 | $ 4,953 | $ 12,458 | $ 19,414 |
OTHER EXPENSES - Employee expen
OTHER EXPENSES - Employee expenses (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
OTHER EXPENSES | ||||
Wages, salaries and commissions | $ 33,459 | $ 50,422 | $ 112,474 | $ 163,687 |
Benefits | 3,790 | 5,317 | 11,026 | 16,556 |
Employee benefits expense | 37,249 | 55,739 | 123,500 | 180,243 |
Employee Expense Included in Administrative Expenses | 11,800 | 18,800 | 46,400 | 57,900 |
Employee Expense Included in Selling and Marketing Expenses | $ 25,400 | $ 36,900 | $ 77,100 | $ 122,300 |
RESTRUCTURING COSTS (Details)
RESTRUCTURING COSTS (Details) $ in Thousands | 9 Months Ended |
Dec. 31, 2020CAD ($) | |
RESTRUCTURING COSTS | |
Restructuring costs | $ 7,118 |
Restructuring provision | $ 2,500 |
PROFIT (LOSS) PER SHARE (Detail
PROFIT (LOSS) PER SHARE (Details) - CAD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings per share: | ||||
Profit (loss) from continuing operations | $ (52,327) | $ 20,601 | $ (20,385) | $ (160,022) |
Earnings (loss) available to shareholders | (47,539) | 26,894 | (19,755) | (168,727) |
Adjusted earnings (loss) from continuing operations available to shareholders | $ (47,539) | $ 26,894 | $ (19,755) | $ (168,727) |
Dilutive effect, options | 572,283 | 192,153 | ||
Basic earnings (loss) per share | ||||
Weighted average (shares) | 48,043,495 | 9,881,771 | 26,355,407 | 9,844,806 |
Basic earnings (loss) per share, continuing operations | $ (1.09) | $ 2.08 | $ (0.77) | $ (16.25) |
Basic earnings (loss) per share | $ (0.99) | $ 2.72 | $ (0.75) | $ (17.13) |
Diluted earnings (loss) per share | ||||
Weighted average, adjusted (shares) | 48,800,850 | 9,964,285 | 26,656,928 | 9,971,327 |
Diluted earnings (loss) per share, continuing operations | $ (1.09) | $ 2.07 | $ (0.77) | $ (16.25) |
Diluted earnings (loss) per share | $ (0.99) | $ 2.70 | $ (0.75) | $ (17.13) |
Assumed to be settled restricted share | ||||
Earnings per share: | ||||
Dilutive effect, convertible instruments | 3,253 | 76,896 | 44,370 | 118,358 |
Assumed to be settled deferred share | ||||
Earnings per share: | ||||
Dilutive effect, convertible instruments | 187 | 5,618 | 4,296 | 8,163 |
Restricted share units | ||||
Earnings per share: | ||||
Dilutive effect, convertible instruments | 17,053,000 | 5,643,000 | ||
Deferred share units | ||||
Earnings per share: | ||||
Dilutive effect, convertible instruments | 164,579,000 | 55,059,000 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - Discontinued operations £ in Millions, $ in Millions | Dec. 29, 2020GBP (£) | Apr. 10, 2020CAD ($)customer | Dec. 31, 2020CAD ($) |
Discontinued operations: | |||
Customers impacted | customer | 1,000 | ||
Gain (loss) on disposal group | $ | $ (1.1) | $ 1.5 | |
Contingent consideration | £ | £ 2.2 |
DISCONTINUED OPERATIONS - held
DISCONTINUED OPERATIONS - held for sale (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Discontinued operations: | |||||
Cash and cash equivalents | $ 66,635 | $ 26,093 | $ 26,093 | $ 17,988 | $ 9,927 |
Current trade and other receivables, net | 344,080 | 403,907 | |||
Income taxes recoverable | 4,928 | 6,641 | |||
Other current assets | 143,145 | 203,270 | |||
Total current assets | 606,947 | 694,378 | |||
Property and equipment | 20,638 | 28,794 | |||
Intangible assets | 86,618 | 98,266 | |||
Assets classified as held for sale | 2,571 | 7,611 | |||
Trade and other payables | 472,763 | 685,665 | |||
Provisions | 5,945 | 1,529 | |||
Liabilities classified as held for sale | 2,712 | 4,906 | |||
Discontinued operations | |||||
Discontinued operations: | |||||
Cash and cash equivalents | 1,784 | 898 | |||
Current trade and other receivables, net | 702 | 4,978 | |||
Income taxes recoverable | 16 | 12 | |||
Other current assets | 69 | 1,140 | |||
Total current assets | 2,571 | 7,028 | |||
Property and equipment | 38 | ||||
Intangible assets | 545 | ||||
Trade and other payables | 1,690 | 4,823 | |||
Deferred revenue | 83 | 83 | |||
Provisions | 939 | ||||
Discontinued operations | Classified as held for sale | |||||
Discontinued operations: | |||||
Assets classified as held for sale | 2,571 | 7,611 | |||
Liabilities classified as held for sale | $ 2,712 | $ 4,906 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Dec. 31, 2020CAD ($) | Mar. 31, 2020CAD ($) | Mar. 31, 2012plaintiff |
Commitments and Contingencies: | |||
Contract liabilities | $ 2,540,642 | ||
Legal proceedings provision | 6,000 | ||
Legal proceedings | |||
Commitments and Contingencies: | |||
Number of plaintiffs - federal case | plaintiff | 1,800 | ||
Number of plaintiffs - ohio case | plaintiff | 8,000 | ||
Surety bonds | |||
Commitments and Contingencies: | |||
Financial effect | 46,300 | $ 63,400 | |
Letters of credit | |||
Commitments and Contingencies: | |||
Financial effect | 77,800 | ||
Not later than one year | |||
Commitments and Contingencies: | |||
Contract liabilities | 336,773 | ||
1-3 years | |||
Commitments and Contingencies: | |||
Contract liabilities | 1,713,758 | ||
4-5 years | |||
Commitments and Contingencies: | |||
Contract liabilities | 384,634 | ||
More than 5 years | |||
Commitments and Contingencies: | |||
Contract liabilities | $ 105,477 |