Document And Entity Information
Document And Entity Information | 12 Months Ended |
Mar. 31, 2021shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Period End Date | Mar. 31, 2021 |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Registrant Name | Just Energy Group Inc. |
Entity Central Index Key | 0001538789 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding (in shares) | 48,078,637 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Current Fiscal Year End Date | --03-31 |
Amendment Flag | false |
Consolidated statements of fina
Consolidated statements of financial position - CAD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 215,989 | $ 26,093 |
Restricted cash | 1,139 | 4,326 |
Trade and other receivables, net | 328,195 | 403,907 |
Gas in storage | 2,993 | 6,177 |
Fair value of derivative financial assets | 27,462 | 36,353 |
Income taxes recoverable | 8,238 | 6,641 |
Other current assets | 169,720 | 203,270 |
Total current assets excluding assets classified as held for sale | 753,736 | 686,767 |
Assets classified as held for sale | 7,611 | |
Total current assets | 753,736 | 694,378 |
Non-current assets | ||
Investments | 32,889 | 32,889 |
Property and equipment, net | 17,827 | 28,794 |
Intangible assets, net | 70,723 | 98,266 |
Goodwill | 163,770 | 272,692 |
Fair value of derivative financial assets | 10,600 | 28,792 |
Deferred income tax assets | 3,744 | 3,572 |
Other non-current assets | 35,262 | 56,450 |
Total non-current assets | 334,815 | 521,455 |
TOTAL ASSETS | 1,088,551 | 1,215,833 |
Current liabilities | ||
Trade and other payables | 909,589 | 685,665 |
Deferred revenue | 1,408 | 852 |
Income taxes payable | 4,126 | 5,799 |
Fair value of derivative financial liabilities | 12,929 | 113,438 |
Provisions | 6,786 | 1,529 |
Current portion of long-term debt | 654,180 | 253,485 |
Total current liabilities excluding liabilities associated with assets classified as held for sale | 1,589,018 | 1,060,768 |
Liabilities relating to assets classified as held for sale | 4,906 | |
Total current liabilities | 1,589,018 | 1,065,674 |
Non-current liabilities | ||
Long-term debt | 1,560 | 528,518 |
Fair value of derivative financial liabilities | 61,169 | 76,268 |
Deferred income tax liabilities | 2,749 | 2,931 |
Other non-current liabilities | 19,078 | 37,730 |
Total non-current liabilities | 84,556 | 645,447 |
TOTAL LIABILITIES | 1,673,574 | 1,711,121 |
SHAREHOLDERS' DEFICIT | ||
Shareholders' capital | 1,537,863 | 1,246,829 |
Equity component of convertible debentures | 13,029 | |
Contributed deficit | (11,634) | (29,826) |
Accumulated deficit | (2,201,869) | (1,809,557) |
Accumulated other comprehensive income | 91,009 | 84,651 |
Non-controlling interest | (392) | (414) |
TOTAL SHAREHOLDERS' DEFICIT | (585,023) | (495,288) |
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT | $ 1,088,551 | $ 1,215,833 |
Consolidated statements of loss
Consolidated statements of loss - CAD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
CONTINUING OPERATIONS | |||
Sales | $ 2,740,037 | $ 3,153,652 | |
Cost of goods sold | 4,512,166 | 2,517,299 | |
GROSS MARGIN | (1,772,129) | 636,353 | $ 678,571 |
INCOMES (EXPENSES) | |||
Administrative | (142,391) | (167,936) | (165,328) |
Selling and marketing | (179,521) | (220,820) | (211,738) |
Other operating expenses | (64,681) | (133,948) | (156,399) |
Finance costs | (86,620) | (106,945) | (87,779) |
Restructuring costs | (7,118) | (14,844) | |
Reorganization costs | (41,623) | ||
Gain on September Recapitalization transaction, net | 51,360 | ||
Unrealized gain (loss) of derivative instruments and other | 91,736 | (213,417) | (87,459) |
Realized loss of derivative instruments | 1,877,339 | (24,386) | (83,776) |
Impairment of goodwill, intangible assets and other | (114,990) | (92,401) | |
Other expenses (income), net | (1,951) | 32,660 | 2,312 |
Loss from continuing operations before income taxes | (390,589) | (290,840) | (126,440) |
Provision for income taxes | 2,308 | 7,393 | 11,832 |
LOSS FROM CONTINUING OPERATIONS | (392,897) | (298,233) | (138,272) |
DISCONTINUED OPERATIONS | |||
Profit (loss) from discontinued operations | 468 | (11,426) | (128,259) |
LOSS FOR THE YEAR | (392,429) | (309,659) | (266,531) |
Attributable to: | |||
Shareholders of Just Energy | (392,289) | (309,586) | (266,339) |
Non-controlling interest | (140) | (73) | (192) |
LOSS FOR THE YEAR | $ (392,429) | $ (309,659) | $ (266,531) |
Loss per share from continuing operations | |||
Basic (in CAD per share) | $ (11.51) | $ (30.26) | $ (14.21) |
Diluted (in CAD per share) | (11.51) | (30.26) | (14.21) |
Earnings (loss) per share from discontinued operations | |||
Basic (in CAD per share) | 0.01 | (1.16) | (13.18) |
Diluted (in CAD per share) | 0.01 | (1.16) | (13.18) |
Loss per share available to shareholders | |||
Basic (in CAD per share) | (11.50) | (31.42) | (27.39) |
Diluted (in CAD per share) | $ (11.50) | $ (31.42) | $ (27.39) |
Consolidated statements of comp
Consolidated statements of comprehensive loss - CAD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Table [Table] | |||
LOSS FOR THE YEAR | $ (392,429) | $ (309,659) | $ (266,531) |
Other comprehensive profit (loss) to be reclassified to profit or loss in subsequent periods: | |||
Unrealized gain on translation of foreign operations, net of tax | 5,588 | 3,551 | 6,708 |
Unrealized gain (loss) on translation of foreign operations from discontinued operations | 1,185 | (9,603) | (1,686) |
Gain (loss) on translation of foreign operations disposed and reclassified to Consolidated statement of loss | (415) | 11,610 | |
Other comprehensive income, net of tax, exchange differences on translation | 6,358 | 5,558 | 5,022 |
TOTAL COMPREHENSIVE LOSS FOR THE YEAR, NET OF TAX | (386,071) | (304,101) | (261,509) |
Total comprehensive loss attributable to: | |||
Shareholders of Just Energy | (385,931) | (304,028) | (261,317) |
Non-controlling interest | (140) | (73) | (192) |
TOTAL COMPREHENSIVE LOSS FOR THE YEAR, NET OF TAX | $ (386,071) | $ (304,101) | $ (261,509) |
Consolidated statements of chan
Consolidated statements of changes in shareholders' 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 | Contributed deficit | Non-controlling interests | Total |
Balance, beginning of period at Mar. 31, 2018 | $ 716,371 | $ (1,835,778) | $ 74,071 | $ 1,079,055 | $ 136,771 | $ 13,029 | $ (22,693) | $ (422) | |||
Statement Line Items [Line Items] | |||||||||||
Profit (loss) | (266,339) | (192) | $ (266,531) | ||||||||
Balance, end of period at Mar. 31, 2019 | 450,032 | (1,923,808) | $ (1,473,776) | 79,093 | 1,088,538 | 146,965 | $ 1,235,503 | 13,029 | (25,540) | (399) | (172,090) |
Statement Line Items [Line Items] | |||||||||||
Dividends and distributions declared and paid | (88,030) | ||||||||||
Other comprehensive income | 5,022 | ||||||||||
Shares issued | 10,447 | ||||||||||
Shares issuance costs | (253) | ||||||||||
Issuance cost associated with Recapitalization | 253 | ||||||||||
Share-based units exercised | 9,483 | (9,483) | |||||||||
Add: Share-based compensation expense | 5,916 | ||||||||||
Discontinued operations | 217 | ||||||||||
Purchase of non-controlling interest | 1,462 | ||||||||||
Share-based compensation adjustment | (1,031) | ||||||||||
Non-cash deferred share grant distributions | 72 | ||||||||||
Foreign exchange impact on non-controlling interest | 215 | ||||||||||
Profit (loss) | (309,586) | (73) | (309,659) | ||||||||
Balance, end of period at Mar. 31, 2020 | 140,446 | (1,950,003) | (1,809,557) | 84,651 | 1,099,864 | 146,965 | 1,246,829 | 13,029 | (29,826) | (414) | (495,288) |
Statement Line Items [Line Items] | |||||||||||
Dividends and distributions declared and paid | (26,195) | ||||||||||
Other comprehensive income | 5,558 | ||||||||||
Share-based units exercised | 11,326 | (11,326) | |||||||||
Add: Share-based compensation expense | 12,250 | ||||||||||
Discontinued operations | 269 | ||||||||||
Share-based compensation adjustment | (3,664) | ||||||||||
Non-cash deferred share grant distributions | (1,815) | ||||||||||
Foreign exchange impact on non-controlling interest | 58 | ||||||||||
Profit (loss) | (392,289) | (140) | (392,429) | ||||||||
Balance, end of period at Mar. 31, 2021 | $ (251,843) | (1,950,026) | $ (2,201,869) | 91,009 | 1,537,863 | $ 1,537,863 | (11,634) | (392) | $ (585,023) | ||
Statement Line Items [Line Items] | |||||||||||
Dividends and distributions declared and paid | $ (23) | ||||||||||
Other comprehensive income | $ 6,358 | ||||||||||
Issuance of shares due to Recapitalization | 438,642 | ||||||||||
Shares issued | $ (146,965) | ||||||||||
Shares issuance costs | 1,572 | ||||||||||
Issuance cost associated with Recapitalization | (1,572) | ||||||||||
Share-based units exercised | $ 929 | (929) | |||||||||
Settled with common shares | $ (13,029) | ||||||||||
Add: Share-based compensation expense | 6,492 | ||||||||||
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 | $ 162 |
Consolidated statements of cash
Consolidated statements of cash flows - CAD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
OPERATING | |||
Loss from continuing operations before income taxes | $ (390,589) | $ (290,840) | $ (126,440) |
Profit (loss) from discontinued operations before income taxes | 518 | (11,349) | (132,004) |
Loss before income taxes | (390,071) | (302,189) | (258,444) |
Items not affecting cash | |||
Amortization and depreciation | 24,135 | 41,242 | 29,861 |
Impairment of goodwill, intangible assets and other | 114,990 | 92,401 | |
Share-based compensation expense | 6,492 | 12,250 | 5,916 |
Financing charges, non-cash portion | 30,542 | 20,435 | 18,223 |
Gain on sale of subsidiaries, net | 423 | (45,138) | |
Unrealized (gain) loss in fair value of derivative instruments and other | (91,736) | 213,417 | 87,459 |
Gain from Recapitalization transaction | (78,792) | ||
Net change in working capital balances | (65,674) | 43,994 | 18,514 |
Adjustment for discontinued operations, net | (34,814) | 66,411 | |
Income taxes paid | (9,744) | (461) | (12,435) |
Liabilities subject to compromise | 505,736 | ||
Cash inflow (outflow) from operating activities | 46,301 | 41,137 | (44,495) |
INVESTING | |||
Purchase of property and equipment | (423) | (2,159) | (5,159) |
Purchase of intangible assets | (11,132) | (14,382) | (38,383) |
Payments for acquired business | (12,013) | (4,281) | |
Proceeds from disposition of subsidiaries | 4,618 | 7,672 | |
Cash outflow from investing activities | (6,937) | (20,882) | (47,823) |
FINANCING | |||
Dividends paid | (26,172) | (87,959) | |
Repayment of long-term debt | (5,073) | (25,257) | (173,366) |
Issuance of long-term debt | 17,163 | 253,242 | |
Leased asset payments | (3,946) | (5,802) | |
Debt issuance costs | (12,937) | 180 | (18,132) |
Credit facilities withdrawal (Payments) | (9,200) | 34,812 | 79,462 |
Issuance of preferred shares | 10,447 | ||
Preferred shares issuance costs | (352) | ||
Proceeds from DIP Facility | 126,735 | ||
Share swap payout | (21,488) | (10,000) | |
Proceeds from issuance of common stock, net | 100,969 | ||
Cash inflow (outflow) from financing activities | 175,060 | (5,076) | 53,342 |
Effect of foreign currency translation on cash balances | (24,527) | 1,026 | 3 |
Net cash inflow (outflow) | 189,896 | 16,205 | (38,973) |
Cash and cash equivalents, beginning of period | 26,093 | 9,888 | 48,861 |
Cash and cash equivalents, end of period | 215,989 | 26,093 | 9,888 |
Supplemental cash flow information: | |||
Interest paid | $ 56,076 | $ 78,749 | $ 52,836 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Mar. 31, 2021 | |
ORGANIZATION | |
ORGANIZATION | 1. 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 Consolidated Financial Statements consist of Just Energy and its subsidiaries and affiliates. The Consolidated Financial Statements were approved by the Board of Directors on June XX, 2021. In February 2021, the State of Texas experienced extremely cold weather (the “Weather Event”). The Weather Event led to increased electricity demand and sustained high prices from February 13, 2021 through February 19, 2021, during which real time market prices were artificially fixed at U.S. dollars (“USD”) $9,000/MWh for 88 consecutive hours. As a result of the losses sustained and without sufficient liquidity to pay the corresponding invoices from the Electric Reliability Council of Texas, Inc. (“ERCOT”) when due, on March 9, 2021, Just Energy received creditor protection under the Companies’ Creditors Arrangement Act (Canada) (“CCAA”) from the Ontario Superior Court of Justice (Commercial List) (the “Court”) and under Chapter 15 of the Bankruptcy Code in the United States, allowing Just Energy to operate while restructuring its consolidated balance sheet. As part of the CCAA filing, the Company entered into a USD$125 million Debtor-In-Possession (“DIP Facility”) financing with certain of its lenders under the 10.25% term loan. The Company also entered into Qualifying Support Agreements with its largest commodity supplier and ISO Services provider. The filings and associated USD$125 million DIP Facility arranged by the Company, enabled Just Energy to continue all operations without interruption throughout the U.S. and Canada and to continue making payments required by ERCOT and satisfy other regulatory obligations. Under the terms of the initial order granted by the Court on March 9, 2021, as amended and restated from time to time (the “Court Order”), any actions against Just Energy to enforce or otherwise effect payment from Just Energy of pre-petition obligations were stayed through September 30, 2021 as of June XX, 2021. As at March 31, 2021, in connection with the CCAA proceedings, the Company identified the following obligations that are subject to potential compromise: Amounts in 000's Trade and other payables $ 505,736 Current portion of long term debt 530,700 Total liabilities subject to compromise $ 1,036,436 The common shares of the Company were halted from trading on the Toronto Stock Exchange (“TSX”) on March 9, 2021 and the Company delisted from the TSX on June 3, 2021. The Company has listed its common shares on the TSX Venture Exchange as of June 4, 2021, under the symbol “JE”. In addition, the Company was delisted from the New York Stock Exchange on March 22, 2021 and was listed on the OTC Pink Market under the symbol “JENGQ” on March 23, 2021. |
OPERATIONS
OPERATIONS | 12 Months Ended |
Mar. 31, 2021 | |
OPERATIONS | |
OPERATIONS | 2. 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 terrapass and its JustGreen program. 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. 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. Through the Filter Group, 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 year ended March 31, 2020 as described in Note 25. The disposal of operations in Japan was completed in April 2020. In March 2021, the Company commenced insolvency proceedings for its German operations and expects to liquidate the German businesses within the next 12 months. As at March 31, 2021, the German business operations were classified as a discontinued operation as appropriate. Previously, these operations were reported within the Mass Market segment, while a portion of the U.K. business was allocated to the Commercial segment. On November 30, 2020, the Company sold EdgePower. The disposal of these operations was reclassified and presented in discontinued operations and were previously reported as a Commercial segment. On September 28, 2020, the Company completed a recapitalization plan (the “September Recapitalization”). The September Recapitalization was undertaken through a plan of arrangement under the Canada Business Corporations Act (“CBCA”). See further discussion in Note 15 and Note 18. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Mar. 31, 2021 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | 3. (a) The Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. The policies applied in these Consolidated Financial Statements were based on IFRS issued and effective as at March 31, 2021. (b) The Consolidated Financial Statements are presented in Canadian dollars, the functional currency of Just Energy, and all values are rounded to the nearest thousand, except where otherwise indicated. The Consolidated 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 Company’s business is affected by seasonality. As a result, for certain periods such as the second fiscal quarter, the Company has increased working capital requirements that require the Company to either access cash or other financing sources. Principles of consolidation The Consolidated Financial Statements include the accounts of Just Energy and its directly or indirectly owned subsidiaries as at March 31, 2021. Subsidiaries are consolidated from the date of acquisition and control and continue to be consolidated until the date that such control ceases. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect these returns through its power over the investee. The financial statements of the subsidiaries are prepared for the same reporting period as Just Energy, using consistent accounting policies. All intercompany balances, income, expenses, and unrealized gains and losses resulting from intercompany transactions are eliminated on consolidation. Going concern Due to the Weather Event and associated CCAA filing, the Company’s ability to continue as a going concern for the next 12 months is dependent on the Company emerging from CCAA protection, meeting the liquidity challenges and complying with DIP Facility covenants. The material uncertainties arising from the CCAA filings cast substantial 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 Consolidated Financial Statements do not reflect the adjustments to carrying values of assets and liabilities and the reported expenses and Consolidated Statements of Financial Position classifications that would be necessary if the going concern assumption was deemed inappropriate. These adjustments could be material. There can be no assurance that the Company will be successful in these initiatives, that lenders will provide further financing or relief for covenants, or that the Company can refinance or repay credit facilities from new sources of financing. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | 4. Cash and cash equivalents and restricted cash All highly liquid temporary cash investments with an original maturity of three months or less when purchased are cash equivalents. For the consolidated statements of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts. Restricted cash includes cash and cash equivalents, where the availability of cash to be exchanged or used to settle a liability is restricted by debt arrangements. Accrued gas receivable/accrued gas payable or gas delivered in excess of consumption/deferred revenue Accrued gas receivable from Just Energy’s customers is stated at fair value and results from customers consuming more gas than has been delivered by Just Energy to local distribution companies (“LDCs”). Accrued gas payable represents Just Energy’s obligation to the LDCs for the customers’ excess consumption, over what was delivered to the LDCs. Gas delivered to LDCs in excess of consumption by customers is stated at the lower of cost and net realizable value. Collections from customers in advance of their consumption of gas result in deferred revenue. Assuming normal weather and consumption patterns, during the winter months, customers will have consumed more than was delivered, resulting in the recognition of accrued gas receivable/accrued gas payable. In the summer months, customers will have consumed less than what was delivered, resulting in the recognition of gas delivered in excess of consumption/deferred revenue. This is applicable to the markets of Ontario, Manitoba, Quebec, Saskatchewan and Michigan. Gas in storage Gas in storage represents the gas delivered to the LDCs in Illinois, Indiana, New York, Ohio, Maryland, California (gas) and Alberta. The balance will fluctuate as gas is injected into or withdrawn from storage. Gas in storage is valued at the lower of cost and net realizable value, with cost being determined based on market cost on a weighted average basis. Net realizable value is the estimated selling price in the ordinary course of business. Property and equipment Property and equipment are stated at cost, net of any accumulated depreciation and impairment losses. Cost includes the purchase price and, where relevant, any costs directly attributable to bringing the asset to the location and condition necessary for its intended use and the present value of all dismantling and removal costs. Where major components of property and equipment have different useful lives, the components are recognized and depreciated separately. Just Energy recognizes, in the carrying amount, the cost of replacing part of an item when the cost is incurred and if it is probable that the future economic benefits embodied in the item can be reliably measured. Depreciation is provided over the estimated useful lives of the assets as follows: Asset category Depreciation method Rate/useful life Furniture and fixtures Declining balance 20 % Office equipment Declining balance 20 % Computer equipment Declining balance 30 % Leasehold improvements Straight-line Shorter of useful life and lease term Premise assets Straight-line 4–7 years An item of property and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset is included in the Consolidated Statements of Loss. The useful lives and methods of depreciation are reviewed at each financial year-end and adjusted prospectively, if appropriate. Business combinations All identifiable assets acquired and liabilities assumed are measured at the acquisition date at fair value. The Company records all identifiable intangible assets including identifiable assets that had not been recognized by the acquiree before the business combination. Any excess of the cost of acquisition over the Company’s share of the net fair value of the identifiable assets acquired and liabilities assumed is recorded as goodwill. During the measurement period (which is within one year from the acquisition date), Just Energy may adjust the amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date. Adjustments related to facts and circumstances that did not exist as at the Consolidated statement of financial position dates are taken to the Consolidated Statements of Loss. The Company records acquisition-related costs as expenses in the periods in which the costs are incurred with the exception of certain costs relating to registering and issuing debt or equity securities which are accounted for as part of the financing. Non-controlling interest is recognized at its proportionate share of the fair value of identifiable assets and liabilities, unless otherwise indicated. Goodwill Goodwill is initially measured at cost, which is the excess of the cost of the business combination over Just Energy’s share in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities. After initial recognition, goodwill is measured at cost, less impairment losses. For the purpose of impairment testing, goodwill is allocated to each of Just Energy’s operating segments that are expected to benefit from the synergies of the combination, irrespective of whether other assets and liabilities of the acquiree are assigned to those segments. Intangible assets Intangible assets acquired outside of a business combination are measured at cost on initial recognition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and/or accumulated impairment losses. Intangible assets with finite useful lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization method and amortization period of an intangible asset with a finite useful life are reviewed at least annually. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense related to intangible assets with finite lives is recognized in the Consolidated Statements of Loss. Internally developed intangible assets are capitalized when the product or process is technically and commercially feasible, the future economic benefit is measurable, Just Energy can demonstrate how the asset will generate future economic benefits and Just Energy has sufficient resources to complete development. The cost of an internally developed intangible asset comprises all directly attributable costs necessary to create, produce and prepare the asset to be capable of operating in the manner intended by management. The goodwill and certain brands are considered to have indefinite lives and are not amortized, rather tested annually for impairment or when there are indications that these assets may be impaired. The assessment of indefinite life is reviewed annually. The Filter Group brand is treated as a finite life asset and amortized due to its history of rebranding. Gains or losses arising from disposal of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the Consolidated Statements of Loss when the asset is derecognized. Intangible asset category Amortization method Rate/useful life Customer relationships Straight-line 10 years Technology Straight-line 3–5 years Brand (finite life) Straight-line 10 years Impairment of non-financial assets Just Energy assesses whether there is an indication that an asset may be impaired at each reporting date. If such an indication exists or when annual testing for an asset is required, Just Energy estimates the asset’s recoverable amount. The recoverable amounts of goodwill and intangible assets with an indefinite useful life are tested annually. The recoverable amount is the higher of an asset’s or cash-generating unit’s (“CGU”) or group of CGU’s fair value less costs to sell and its value-in-use. Value-in-use is determined by discounting estimated future pre-tax cash flows using a pre-tax discount rate that reflects the current market assessment of the time value of money and the specific risks of the asset. The recoverable amount of assets that do not generate independent cash flows is determined based on the CGU to which the asset belongs. An impairment loss is recognized if an asset’s carrying amount or that of the CGU to which it is allocated is higher than its recoverable amount. Impairment losses of individual CGUs are charged against the value of assets in proportion to their carrying amount. For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such an indication exists, Just Energy estimates the asset’s or CGU’s recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of amortization, had no impairment loss been recognized for the asset in prior years. Such a reversal is recognized in the Consolidated Statements of Loss. Goodwill is tested for impairment annually and when circumstances indicate that the carrying value may be impaired. Goodwill is tested at the operating segment level as that is the lowest level at which goodwill is monitored. Impairment is determined for goodwill by assessing the recoverable amount of each operating segment to which the goodwill relates. Where the recoverable amount of the operating segment is less than its carrying amount, an impairment loss is recognized. Impairment losses relating to goodwill cannot be reversed in future periods. Leases A lease is an arrangement whereby the lessor conveys to the lessee, in return for a payment or series of payments, the right to use an asset for an agreed period of time. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, within a range of two years to six years. The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement at the inception date and whether fulfillment of the arrangement is dependent on the use of a specific asset or assets, or the arrangement conveys a right to use the asset. Lease liabilities At the commencement date of the lease, Just Energy recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable. The lease payments also include payments of penalties for terminating the lease, if the lease term reflects the exercising of the option to terminate. Lease liabilities are grouped into other liabilities on the Consolidated Statement of Financial Position. In calculating the present value of lease payments, Just Energy uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease. Just Energy as a lessee Just Energy applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term. Financial instruments (i) Recognition A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Regular purchases and sales of financial assets are recognized on the trade date, being the date on which Just Energy commits to purchase or sell the asset. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. (ii) Classification Just Energy classified its financial assets and liabilities in the following measurement categories: Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss include financial assets held for trading and financial assets designated upon initial recognition as at fair value through profit or loss. This category includes derivative financial instruments entered into that are not designated as hedging instruments in hedge relationships as defined by IFRS 9, Financial Instruments (“IFRS 9”). Included in this class are primarily physical delivered energy contracts, for which the own-use exemption could not be applied, financially settled energy contracts and foreign currency forward contracts. An analysis of fair values of financial instruments and further details as to how they are measured are provided in Note 12. Related realized and unrealized gains and losses are included in the consolidated statements of loss. Financial assets classified at fair value through other comprehensive income Financial assets at fair value through OCI are equity instruments that Just Energy has elected to recognize the changes in fair value through OCI. They were recognized initially at fair value in the consolidated statements of financial position and were remeasured subsequently at fair value with gains and losses arising from changes in fair value recognized directly in equity and presented in OCI. Amortized Cost Assets held for collection of contractual cash flows that represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a financial asset is recognized in profit or loss when the asset is derecognized or impaired. Trade and other receivables, trade and other payables are included in this category. Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are acquired for the purpose of selling in the near term. This category includes derivative financial instruments entered into by Just Energy that are not designated as hedging instruments in hedge relationships as defined by IFRS 9. Included in this class are primarily physically delivered energy contracts, for which the own-use exemption could not be applied, financially settled energy contracts and foreign currency forward contracts. Gains or losses on liabilities held for trading are recognized in the consolidated statements of loss. Other financial liabilities at amortized cost Other financial liabilities are measured at amortized cost using the effective interest rate method. Financial liabilities include long-term debt issued and are initially measured at fair value. Transaction costs related to the long-term debt instruments are included in the value of the instruments and amortized using the effective interest rate method. The effective interest expense is included in finance costs in the consolidated statement of loss. (iii) Measurement At initial recognition, Just Energy measures a financial asset at its fair value. In the case of a financial asset not categorized as fair value through profit or loss (“FVTPL”), transaction costs that are directly attributable to the acquisition of the financial asset are included in measurement at initial recognition. Transaction costs of financial assets carried at FVTPL are expensed in profit or loss. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. Subsequent measurement of financial assets depends on Just Energy’s business objective for managing the asset and the cash flow characteristics of the asset. Derivative instruments Just Energy enters into fixed-term contracts with customers to provide electricity and gas at fixed prices. These customer contracts expose Just Energy to changes in consumption as well as changes in the market prices of gas and electricity. To reduce its exposure to movements in commodity prices, Just Energy enters into contracts with suppliers that expose the Company to changes in prices for the purchase and sale of power and natural gas. These contracts are treated as derivatives as they do not meet the own-use criteria under IAS 32, Financial Instruments: Presentation. The primary factors affecting the fair value of derivative instruments at any point in time are the volume of open derivative positions and the changes of commodity market prices. Prices for power and natural gas are volatile, which can result in material changes in the fair value measurements reported in Just Energy’s consolidated financial statements in the future. Just Energy analyzes all its contracts, of both a financial and non-financial nature, to identify the existence of any “embedded” derivatives. Embedded derivatives are accounted for separately from the underlying contract at the inception date when their economic characteristics are not closely related to those of the host contract and the host contract is not carried as held for trading or designated as fair value through profit or loss. These embedded derivatives are measured at fair value with changes in fair value recognized in profit or loss. All derivatives are recognized at fair value on the date on which the derivative is entered into and are remeasured to fair value at each reporting date. Derivatives are carried in the consolidated statements of financial position as other financial assets when the fair value is positive and as other financial liabilities when the fair value is negative. Just Energy does not utilize hedge accounting; therefore, changes in the fair value of these derivatives are recorded directly to the consolidated statements of loss and are included within unrealized gain on derivative instruments. The 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 are accounted for as derivatives at fair value through profit or loss. These contracts are physically settled by the underlying non-financial item. These are recognized as a corresponding adjustment to cost of goods sold or inventory when the contract is physically settled. These realized gains and losses on financial swap contracts are recorded in the line item realized loss on derivative instruments in the Consolidated Statement of Loss. (iv) Derecognition A financial asset is derecognized when the rights to receive cash flows from the asset have expired or when Just Energy has transferred its rights to receive cash flows from the asset. A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized in the consolidated statements of loss. (v) Impairment Just Energy assesses on a forward-looking basis the expected credit loss (“ECL”) associated with its assets carried at amortized cost, including other receivables. For trade receivables, other receivables and unbilled revenue only, Just Energy applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the receivables. Trade receivables are reviewed qualitatively to determine if they need to be written off. (vi) Financial assets and financial liabilities are offset, and the net amount reported in the consolidated statements of financial position if, and only if, there is currently an enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously. Fair value of financial instruments Fair value 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). The fair value of financial instruments that are traded in active markets at each reporting date is determined by reference to quoted market prices, without any deduction for transaction costs. For financial instruments not traded in an active market, the fair value is determined using appropriate valuation techniques that are recognized by market participants. Such techniques may include using recent arm’s-length market transactions, reference to the current fair value of another instrument that is substantially the same, discounted cash flow analysis, or other valuation models. An analysis of fair values of financial instruments and further details as to how they are measured are provided in Note 12. Revenue recognition Just Energy has identified that the material performance obligation is the provision of gas and electricity to customers, which is satisfied over time throughout the contract term. Just Energy utilizes the output method to recognize revenue based on the units of gas and electricity delivered and billed to the customer each month and Just Energy has elected to adopt the practical expedient to recognize revenue in the amount to which the entity has a right to invoice, as the entity has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the entity’s performance to date. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates and sales taxes. The Company accounts for Transmission and Distribution Service Provider (“TDSP”) charges charged to electricity customers on a gross basis whereby TDSP charges to the customer and payments to the service provider are presented in sales and cost of goods sold, respectively. In Alberta, Texas, Illinois, California (gas), and Ohio, Just Energy assumes the credit risk associated with the collection of customer accounts. Credit review processes have been established to manage the customer default rate. Management factors default from credit risk into its margin expectations for all of the above-noted markets. Foreign currency translation Functional and presentation currency Items included in the Consolidated Financial Statements of each of the Company’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). For U.S.-based subsidiaries, this is USD. The Consolidated Financial Statements are presented in Canadian dollars, which is the parent Company’s presentation and functional currency. Transactions Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the Consolidated Statements of Loss. Translation of foreign operations The consolidated results and Consolidated Statement of Financial Position of all the group entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows: · Assets and liabilities for each Consolidated Statements of Financial Position presented are translated at the closing rate as at the date of that Consolidated Statements of Financial Position; and · Income and expenses for each Consolidated Statements of Loss are translated at the exchange rates prevailing at the dates of the transactions. On consolidation, exchange differences arising from the translation of the net investment in foreign operations are recorded in OCI. When a foreign operation is partially disposed of or sold, exchange differences that were recorded in accumulated other comprehensive income are recognized in the Consolidated Statements of Loss as part of the gain or loss on sale. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. Earnings (loss) per share amounts The computation of earnings (loss) per share is based on the weighted average number of shares outstanding during the year. Diluted earnings (loss) per share is computed in a similar way to basic earnings (loss) per share except that the weighted average number of shares outstanding is increased to include additional shares introduced after the new equity compensation plan assuming the exercise of stock options, restricted share units (“RSUs”), performance share units (“PSUs”) and deferred share units (“DSUs”). These outstanding shares are also adjusted for any pre-September Recapitalization restricted share grants (“RSGs”), performance bonus incentive grants (“PBGs”), deferred share grants (“DSGs”) and convertible debentures, if dilutive. Share-based compensation plans Equity-based compensation liability Share-based compensation plans are equity-settled transactions. The cost of share-based compensation is measured by reference to the fair value at the date on which it was granted. Awards are valued at the grant date and are not adjusted for changes in the prices of the underlying shares and other measurement assumptions. The cost of equity-settled transactions is recognized, together with the corresponding increase in equity, over the period in which the performance or service conditions are fulfilled, ending on the date on which the relevant grantee becomes fully entitled to the award. The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting period reflects the extent to which the vesting period has expired and Just Energy’s best estimate of the number of the shares that will ultimately vest. The expense or credit recognized for a period represents the movement in cumulative expense recognized as at the beginning and end of that period. When units are exercised or exchanged, the amounts previously credited to contributed deficit are reversed and credited to shareholders’ capital. Employee future benefits In Canada, Just Energy offers a long-term wealth accumulation plan (the ‟Canadian Plan”) for all permanent full-time and permanent part-time employees (working more than 26 hours per week). For U.S. employees, Just Energy has established a long-term savings plan (the "U.S. Plan") for all permanent full-time and part-time employees (working more than 30 hours per week) of its subsidiaries. Participation in the plans in Canada or the U.S. is voluntary. Obligations for contributions to the Canadian and U.S. Plans are recognized as an expense in the Consolidated Statements of Loss when the contribution is made by the Company. Income taxes Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from, or paid to, the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in the countries where Just Energy operates and generates taxable income. Current income taxes relating to items recognized directly in OCI or equity are recognized in OCI or equity and not in profit or loss. Management periodically evaluates positions taken in the tax returns with respect to situations where applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Just Energy follows the liability method of accounting for deferred income taxes. Under this method, deferred income tax assets and liabilities are recognized for the estimated tax consequences attributable to the temporary differences between the carrying value of the assets and liabilities in the Consolidated Financial Statements and their respective tax bases. Deferred income tax liabilities are recognized for all taxable temporary differences except: · Where the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and · In respect of taxable temporary differences associated with investments in subsidiaries, where the timing of the reversal of the temporary differences can be controlled by the parent and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred income tax assets are recognized for all deductible temporary differences, the carryforward of unused tax credits and any unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carryforward of unused tax credits and unused tax losses, can be utilized except: · Where the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and · In respect of deductible temporary differences associated with investments in subsidiaries, deferred income tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized. The carrying amount of deferred income tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. Unrecognized deferred income tax assets are reassessed at the end of each reporting period and are recognized to the extent that it has become probable that future taxable profits will allow the deferred income tax asset to be recovered. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized, or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred income taxes relating to items recognized in cumulative translation adjustment or equity is recognized in OCI or equity and not in profit or loss. Deferred income tax assets and deferred income tax liabilities are offset, if a legally enforceable right exists to set off current income tax assets against current income tax liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority. Provisions and r |
CORRECTION OF PRIOR PERIOD FINA
CORRECTION OF PRIOR PERIOD FINANCIAL STATEMENTS | 12 Months Ended |
Mar. 31, 2021 | |
CORRECTION OF PRIOR PERIOD FINANCIAL STATEMENTS | |
CORRECTION OF PRIOR PERIOD FINANCIAL STATEMENTS | 5. The Company determined that the TDSP charges charged to electricity customers were accounted for on a gross basis in certain markets and net in other markets. Under the gross basis, TDSP charges to the customer and payments to the service provider are presented gross within sales and cost of goods sold, respectively. Under the net method, TDSP charges to the customer and payments to the service provider are presented net within cost of goods sold. Management analyzed the appropriate accounting treatment under IFRS 15, Revenue from contracts with customers , based on accounting standards and guidance, terms of the contract, commercial understanding and industry practice. Based on the analysis performed, it was determined that the Company undertakes to deliver the commodity to the customer at their location across various markets and contract offers. Arranging delivery to the customer’s meter is a part of the activities the Company performs to fulfill its obligation to customers and, as such, the Company is the primary obligor to deliver the commodity to the customer. The Company determined that TDSP charges should be accounted for consistently on a gross basis for the relevant markets where the nature of TDSP charges were identical. As a result, prior years amounts on the Consolidated Statements of Loss with respect to Sales and Cost of goods sold were reclassified to reflect the gross basis of presentation. Amounts reflected for the year ended March 31, 2021 are presented gross. Year ended Year ended March 31, 2020, March 31, 2020 as originally reported Correction (Corrected) Sales $ 2,772,809 $ 380,843 $ 3,153,652 Cost of goods sold 2,136,456 380,843 2,517,299 Gross margin 636,353 — 636,353 Year ended Year ended March 31, 2019, March 31, 2019 as originally reported Correction (Corrected) Sales $ 3,038,438 $ 402,955 $ 3,441,393 Cost of goods sold 2,359,867 402,955 2,762,822 Gross margin 678,571 — 678,571 |
SIGNIFICANT ACCOUNTING JUDGMENT
SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS | 12 Months Ended |
Mar. 31, 2021 | |
SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS | |
SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS | 6. The preparation of the Consolidated Financial Statements requires the use of estimates and assumptions to be made in applying the accounting policies that affect the reported amounts of assets, liabilities, income and expenses. The estimates and related assumptions are based on previous experience and other factors 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. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised. Judgments made by management in the application of IFRS that have a significant impact on the Consolidated Financial Statements relate to the following: Allowance for doubtful accounts The measurement of the expected credit loss allowance for accounts receivable requires the use of management’s judgment in estimation techniques, building models, selecting key inputs and making significant assumptions about future economic conditions and credit behaviour of the customers, including the likelihood of customers defaulting and the resulting losses. The Company’s current significant estimates include the historical collection rates as a percentage of revenue and the use of the Company’s historical rates of recovery across aging buckets and the consideration of forward-looking information. All of these inputs are sensitive to the number of months or years of history included in the analysis, which is a key input and judgment made by management. COVID‑19 impact As a result of the continued coronavirus disease (“COVID-19”) pandemic, we have reviewed the estimates, judgments and assumptions used in the preparation of the Consolidated Financial Statements and determined that no significant revisions to such estimates, judgments or assumptions were required for the year ended March 31, 2021. Deferred income taxes Significant management judgment is required to determine the amount of deferred income tax assets and liabilities that can be recognized, based upon the likely timing and the level of future taxable income realized, including the usage of tax-planning strategies. Determining the tax treatment on certain transactions also involves management’s judgment. Fair value of financial instruments Where the fair values of financial assets and financial liabilities recorded in the Consolidated Statements of Financial Position cannot be derived from active markets, they are determined using valuation techniques including discounted cash flow models or transacted/quoted prices of identical assets that are not active. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. The judgment includes consideration of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. Refer to Note 12 for further details about the assumptions as well as a sensitivity analysis. Impairment of non-financial assets Just Energy’s impairment test is based on the estimated value-in-use and uses a discounted cash flow approach model. Management is required to exercise judgment in identifying the CGUs in which to allocate goodwill, working capital and related assets and liabilities. Judgement is applied in the determination of perspective financial information that includes the weighted cost of capital, forecasted growth rates, and expected margin. Refer to Note 11 for further information. |
TRADE AND OTHER RECEIVABLES, NE
TRADE AND OTHER RECEIVABLES, NET | 12 Months Ended |
Mar. 31, 2021 | |
TRADE AND OTHER RECEIVABLES, NET | |
TRADE AND OTHER RECEIVABLES, NET | 7. (a) As at As at March 31, 2021 March 31, 2020 Trade account receivables, net $ 177,244 $ 241,969 Accrued gas receivable 833 7,224 Unbilled revenue, net 103,986 121,993 Other 46,132 32,721 $ 328,195 $ 403,907 (b) 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 (gas) 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 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. Although there is no assurance that the LDCs providing these services will continue to do so in the future, management believes that the risk of the LDCs failing to deliver payment to Just Energy is minimal. The aging of the trade accounts receivable from the markets where the Company bears customer credit risk was as follows: As at March 31, 2021 As at March 31, 2020 Current $ 58,737 $ 83,431 1–30 days 19,415 26,678 31–60 days 3,794 6,513 61–90 days 2,144 5,505 Over 90 days 10,446 35,252 $ 94,536 $ 157,379 (c) Changes in the allowance for doubtful accounts related to the balances in the table above were as follows: As at As at March 31, 2021 March 31, 2020 Balance, beginning of year $ 45,832 $ 182,365 Provision for doubtful accounts 34,260 80,050 Bad debts written off (61,869) (138,514) Foreign exchange 5,140 3,124 Assets classified as held for sale/sold — (81,193) Balance, end of year $ 23,363 $ 45,832 |
OTHER CURRENT AND NON-CURRENT A
OTHER CURRENT AND NON-CURRENT ASSETS | 12 Months Ended |
Mar. 31, 2021 | |
OTHER CURRENT AND NON-CURRENT ASSETS | |
OTHER CURRENT AND NON-CURRENT ASSETS | 8. As at As at (a) Other current assets March 31, 2021 March 31, 2020 Prepaid expenses and deposits $ 58,532 $ 55,972 Customer acquisition costs (a) 45,681 77,939 Green certificates 61,467 63,728 Gas delivered in excess of consumption 649 2,393 Inventory 3,391 3,238 $ 169,720 $ 203,270 As at As at (b) Other non-current assets March 31, 2021 March 31, 2020 Customer acquisition costs (a) $ 27,318 $ 43,686 Other long-term assets 7,944 12,764 $ 35,262 $ 56,450 (a) Amortization of $88.5 million is charged to selling commission expense in the Consolidated Statement of Loss. |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Mar. 31, 2021 | |
INVESTMENTS | |
INVESTMENTS | 9. As at March 31, 2021, Just Energy owns approximately 8% (on a fully diluted basis) of ecobee, a private company that designs, manufactures and sells smart thermostats. This investment is measured at and classified as fair value through profit or loss. The fair value of the investment has been determined directly from transacted/quoted prices of identical assets that are not active (Level 3 measurement). As at March 31, 2021, the fair value of the ecobee investment is $32.9 million (2020 – $32.9 million). |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Mar. 31, 2021 | |
PROPERTY AND EQUIPMENT | |
PROPERTY AND EQUIPMENT | 10. As at March 31, 2021 As at March 31, 2020 Accumulated Net Book Accumulated Net Book Cost Dep Value Cost Dep Value Premise and ROU assets $ 31,167 $ (20,397) $ 10,770 $ 35,899 $ (19,729) $ 16,170 Computer equipment 25,646 (20,788) 4,858 27,959 (19,548) 8,411 Others 1 26,806 (24,607) 2,199 27,777 (23,564) 4,213 Total $ 83,619 $ (65,792) $ 17,827 $ 91,635 $ (62,841) $ 28,794 1 Others include, office equipment, furniture and fixture and lease hold improvements |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Mar. 31, 2021 | |
INTANGIBLE ASSETS | |
INTANGIBLE ASSETS | 11. (a) As at March 31, 2021 As at March 31, 2020 Accumulated Accumulated Cost Amortization Impairment NBV Cost Amortization NBV Technology 1 $ 122,763 $ (70,655) $ (1,116) $ 50,992 $ 121,382 $ (61,531) $ 59,851 Brand 2 32,459 (700) (13,864) 17,895 36,235 (400) 35,835 Others 3 55,610 (53,774) — 1,836 65,800 (63,220) 2,580 Total $ 210,832 $ (125,129) $ (14,980) $ 70,723 $ 223,417 $ (125,151) $ 98,266 1 Technology includes work in progress IT projects of $5.2 million which are not being amortized until completion. 2 This includes a net amount of $16.5 million with an indefinite life. 3 This includes sales networks and customer relationships. The capitalized internally developed costs relate to the development of new customer billing and analysis software solutions for the different energy markets of Just Energy. All research costs and development costs not eligible for capitalization have been expensed and are recognized in administrative expenses. (b) Goodwill acquired through business combinations and intangible assets with indefinite lives have been allocated to one of two operating segments. These segments are Mass Market and Commercial. Goodwill and Indefinite Life Intangibles Goodwill is tested annually for impairment at the level of the two operating segments at which the Company’s operations are monitored by the chief operational decision maker. The segments are identified in Note 27. Goodwill is also tested for impairment whenever events or circumstances occur which could potentially reduce the recoverable amount of one or more of the segments below its carrying value. For the year ended March 31, 2021, an impairment loss was recognized for the full remaining balance of the goodwill of the Commercial segment in the amount of $100.0 million (2020 – $92.0 million) as the carrying value exceeded the recoverable amount. An impairment was also recognized in the amount of $14.0 million for the full remaining balance of the Commercial brand. The impairment amount was included on the Consolidated Statements of Loss. An impairment loss was not recognized for the Mass Market segment as its recoverable value exceeded its carrying value. The recoverable amount for purposes of impairment testing for the Commercial segment represented the estimated value-in-use. The value-in-use was calculated using the present value of estimated future cash flows applying an appropriate risk-adjusted rate to internal operating forecasts. Management believes that the forecasted cash flows generated based on operating forecasts is the appropriate basis upon which to assess goodwill and individual assets for impairment. The value-in-use calculation has been prepared solely for the purposes of determining whether the goodwill balance was impaired. Estimated future cash flows were prepared based on certain assumptions prevailing at the time of the test. The actual outcomes may differ from the assumptions made. The period included in the estimated future cash flows for the Commercial segment include five years of the operating plans plus an estimated terminal value beyond the five years driven by historical and forecasted trends. Discount rates were derived using a capital asset pricing model and by analyzing published rates for industries relevant to the Company’s reporting units to estimate the cost of financing. A discount rate of 12.5% was used to determine the estimated value-in-use. The key assumptions used in determining the value-in-use of the Commercial segment include historical attrition and renewal. Sensitivities to the discount rate and key assumptions did not have a significant impact on the results of impairment test. The underlying growth rate is driven by sales forecast, consistent with recent historical performance and taking into considerations sales channels and strategies in place today. Customer acquisition costs included in the forecast are consistent with current trends considering today’s competitive environment. Cost to operate represents management’s best estimate of future cost to operate. Sensitivities to different variables have been estimated using certain simplifying assumptions and did not have a material impact on the results of the impairment test. Intangibles Impairment losses were recognized on definite-lived intangible assets for certain technology projects in the amount of $1.1 million. The impairment amount is included in the Consolidated Statements of Loss. The impairment on certain technology projects were recorded to the Mass Market segment. Intangible assets are reviewed annually for any indicators of impairment. Indicators of impairment were evident for the specific IT projects given the use of the software. In 2020, impairment losses were recognized on definite-lived intangible assets for Filter Group Inc., EdgePower Inc. and certain technology projects in the amounts of $8.5 million, $14.7 million and $3.9 million, respectively. The impairment amounts were included in the Consolidated Statements of Loss for that period. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Mar. 31, 2021 | |
FINANCIAL INSTRUMENTS | |
FINANCIAL INSTRUMENTS | 12. (a) 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 Scholes 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 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 gain (loss) in fair value of derivative instruments and other on the Consolidated Statements of Loss. As at As at As at March 31, 2021 March 31, 2020 March 31, 2019 Physical forward contracts and options (i) $ 8,795 $ (130,182) $ (116,350) Financial swap contracts and options (ii) 68,944 (62,612) 39,832 Foreign exchange forward contracts (7,826) 9,055 72 Share swap — (9,581) (3,507) 6.5% convertible bond conversion feature — — 247 Unrealized foreign exchange on 10.25% loan 17,077 — — Unrealized foreign exchange on the 6.5% convertible bond and 8.75% loan transferred to realized foreign exchange resulting from the September Recapitalization — (18,132) (8,061) Weather derivatives (iii) 2,242 (229) 7,796 Other derivative options 2,504 (1,736) (7,488) Unrealized gain (loss) of derivative instruments and other $ 91,736 $ (213,417) $ (87,459) 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, 2021: Financial Financial Financial Financial assets assets liabilities liabilities (current) (non-current) (current) (non-current) Physical forward contracts and options (i) $ 12,513 $ 6,713 $ 9,109 $ 56,122 Financial swap contracts and options (ii) 6,942 2,634 3,548 5,047 Foreign exchange forward contracts — — 272 — Weather derivatives (iii) 1,911 — — — Other derivative options 6,096 1,253 — — As at March 31, 2021 $ 27,462 $ 10,600 $ 12,929 $ 61,169 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 Individual derivative asset and liability transactions are offset, and the net amount reported in the Consolidated Statements of Financial Position if, and only if, there is currently an enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously. Individual derivative transactions are typically offset at the legal entity and counterparty level. Below is a summary of the financial instruments classified through profit or loss as at March 31, 2021, to which Just Energy has committed: (i) Physical forward contracts and options consist of: · Electricity contracts with a total remaining volume of 26,364,660 MWh, a weighted average price of $45.50/MWh and expiry dates up to December 31, 2029. · Natural gas contracts with a total remaining volume of 85,702,596 GJs, a weighted average price of $2.89/GJ and expiry dates up to October 31, 2025. · Renewable energy certificates (“RECs”) with a total remaining volume of 2,469,441 MWh, a weighted average price of $38.02/REC and expiry dates up to December 31, 2029. · Electricity generation capacity contracts with a total remaining volume of 2,855 MWCap, a weighted average price of $4,737.46/MWCap and expiry dates up to May 31, 2025. · Ancillary contracts with a total remaining volume of 681,070 MWh, a weighted average price of $16.13/MWh and expiry dates up to December 31, 2022. (ii) Financial swap contracts and options consist of: · Electricity contracts with a total remaining volume of 15,526,415 MWh, a weighted average price of $42.91/MWh and expiry dates up to December 31, 2024. · Natural gas contracts with a total remaining volume of 96,373,985 GJs, a weighted average price of $3.11/GJ and expiry dates up to December 31, 2026. (iii) Weather derivatives consist of: · HDD natural gas swaps with price strikes to be set on futures index and temperature strikes from 1,813F to 4,985F 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 3,439C to 4,985F HDD and an expiry date of March 31, 2023. 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 Consolidated Financial Statements. 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 Consolidated Statements of Loss. 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 March 31, 2021: Level 1 Level 2 Level 3 Total Derivative financial assets $ — $ 682 $ 37,380 $ 38,062 Derivative financial liabilities — — (74,098) (74,098) Total net derivative financial assets (liabilities) $ — $ 682 $ (36,718) $ (36,036) 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, and RECs had risen (fallen) by 10%, assuming that all of the other variables had remained constant, profit (loss) before income taxes for the year ended March 31, 2021 would have increased (decreased) by $139.2 million ($136.6 million), primarily as a result of the change in fair value of Just Energy’s derivative financial instruments. Key assumptions used when determining the significant unobservable inputs for all commodity supply contracts included in Level 3 of the FV hierarchy consist 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 assets (liabilities) classified as Level 3 in the FV hierarchy for the following periods: Year ended Year ended March 31, 2021 March 31, 2020 Balance, beginning of year $ (85,885) $ 17,310 Total gains 584 (3,822) Purchases (4,059) (43,663) Sales (1,670) 14,549 Settlements 54,312 (70,259) Balance, end of year $ (36,718) $ (85,885) (b) As at March 31, 2021 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. The 10.25% term loan is classified as level 1 in the FV hierarchy. Prior to the exchange under the September Recapitalization, 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 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 USD 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 a policy to economically hedge 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 March 31, 2021, assuming that all the other variables had remained constant, the net loss for the year ended March 31, 2021 would have been $6.5 million lower/higher and other comprehensive loss would have been $26.3 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 $3.6 million in profit (loss) before income taxes for the year ended March 31, 2021 (2020 - $2.4 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 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 March 31, 2021 would have increased (decreased) by $138.8 million ($136.2 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 7. (ii) Physical supplier risk 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 March 31, 2021, Just Energy has applied an adjustment factor to determine the fair value of its financial instruments in the amount of $1.1 million (2020 - $23.8 million) to accommodate for its counterparties’ risk of default. (iii) Counterparty credit risk 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 March 31, 2021, the estimated counterparty credit risk exposure amounted to $38.1 million (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 | 12 Months Ended |
Mar. 31, 2021 | |
TRADE AND OTHER PAYABLES | |
TRADE AND OTHER PAYABLES | 13. As at As at March 31, 2021 March 31, 2020 Commodity suppliers' accruals and payables (a) $ 712,144 $ 414,581 Green provisions and repurchase obligations 77,882 103,245 Sales tax payable 27,684 19,706 Non-commodity trade accruals and accounts payable (b) 68,567 117,473 Current portion of payable to former joint venture partner (c) 11,467 18,194 Accrued gas payable 544 3,295 Other payables 11,301 9,171 $ 909,589 $ 685,665 (a) Includes $468.6 million that is subject to compromise depending on the outcome of the CCAA proceedings (b) Includes $12.9 million that is subject to compromise depending on the outcome of the CCAA proceedings (c) The amount due to the former joint venture partner is subject to compromise depending on the outcome of the CCAA proceedings. |
DEFERRED REVENUE
DEFERRED REVENUE | 12 Months Ended |
Mar. 31, 2021 | |
DEFERRED REVENUE. | |
DEFERRED REVENUE | 14. As at As at March 31, 2021 March 31, 2020 Balance, beginning of year $ 852 $ 43,228 Additions to deferred revenue 10,963 7,499 Revenue recognized during the year (7,360) (10,726) Foreign exchange impact (2,968) 352 Liabilities classified as held for sale/sold (79) (39,501) Balance, end of year $ 1,408 $ 852 U.K. operations recorded substantially all of its revenue within deferred revenue. The change for 2020 was substantially related to operations sold during the year. |
LONG-TERM DEBT AND FINANCING
LONG-TERM DEBT AND FINANCING | 12 Months Ended |
Mar. 31, 2021 | |
LONG-TERM DEBT AND FINANCING | |
LONG-TERM DEBT AND FINANCING | 15. As at As at March 31, 2021 March 31, 2020 DIP Facility (a) $ 126,735 $ — Less: Debt issue costs (a) (6,312) — Filter Group financing (b) Credit facility - subject to compromise (c) 227,189 236,389 Less: Debt issue costs (c) — (1,644) 10.25% term loan - subject to compromise (d) 289,904 — 7.0% $13M subordinated notes - subject to compromise (e) 13,607 — 8.75% loan (f) — 280,535 6.75% $100M convertible debentures (g) — 90,187 6.75% $160M convertible debentures (h) — 153,995 6.5% convertible bonds (i) — 12,851 655,740 782,003 Less: Current portion (654,180) (253,485) $ 1,560 $ 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 DIP Facility (a) $ $ — $ — $ — $ Less: Debt issue costs (a) (6,312) — — — (6,312) Filter Group financing (b) 3,057 1,560 — — 4,617 Credit facility - subject to compromise (c) 227,189 — — — 227,189 10.25% term loan - subject to compromise (d) 289,904 — — — 289,904 7.0% $13M subordinated notes - subject to compromise (e) 13,607 — — — 13,607 $ 654,180 $ 1,560 $ — $ — $ 655,740 The details for long-term debt are as follows: Cash Payment (Gain) As at As at April inflows Foreign in Kind Non-cash Loss on March 31, 1, 2020 (outflows) exchange ("PIK") changes Recapitalization DIP Facility (a) $ — $ 120,423 $ — $ — $ — $ — $ 120,423 Filter Group financing (b) 9,690 (5,073) — — — — 4,617 Credit facility (c) 234,745 (13,826) — — 6,270 — 227,189 10.25% loan (d) — — (17,077) 15,123 291,858 — 289,904 7.0% $13M subordinated — (2,000) — 428 15,179 — 13,607 8.75% loan (f) 280,535 — — — (281,632) 1,097 — 6.75% $100M convertible debentures (g) 90,187 — — — (74,544) (15,643) — 6.75% $160M convertible debentures (h) 153,995 — — — (101,955) (52,040) — 6.5% convertible bonds (i) 12,851 — — — (643) (12,208) — $ 782,003 $ 99,524 $ (17,077) $ 15,551 $ (145,467) $ (78,794) $ 655,740 Less: Current portion (253,485) — — — — — (654,180) $ 528,518 $ 1,560 Cash (Gain) As at As at April inflows Foreign Non-cash Loss on March 31, 1, 2019 (outflows) exchange PIK changes Recapitalization 2020 Filter Group financing (b) $ 17,577 $ (7,887) $ — $ — $ — $ — $ 9,690 Credit facility (c) 199,753 34,812 — — 180 — 234,745 8.75% loan (f) 240,094 17,163 17,613 — 5,665 — 280,535 6.75% $100M convertible debentures (g) 87,520 — — — 2,667 — 90,187 6.75% $160M convertible debentures (h) 150,945 — — — 3,050 — 153,995 6.5% convertible bonds (i) 29,483 (17,370) 518 — 220 — 12,851 $ 725,372 $ 26,718 $ 18,131 $ — $ 11,782 $ — $ 782,003 Less: Current portion (479,101) — — — — — (253,485) $ 246,271 $ 528,518 The following table details the finance costs for the period ended March 31. Interest is expensed based on the effective interest rate. DIP Facility (a) $ $ — $ — Filter Group financing (b) 627 1,793 875 Credit facility (c) 20,544 23,736 20,715 10.25% Term Loan (d) 14,785 — — 7.0% $13M subordinated notes(e) 557 — — 8.75% loan (f) 18,055 35,089 8,999 6.75% $100M convertible debentures (g) 4,762 9,417 8,819 6.75% $160M convertible debentures (h) 6,948 13,850 13,598 6.5% convertible bonds (i) 539 2,746 18,387 Supplier finance and others (j) 18,313 20,314 16,386 $ 86,620 $ 106,945 $ 87,779 (a) As discussed in Note 1, the Company filed and received the Court Order under the CCAA on March 9, 2021. In conjunction with the CCAA filing, the Company entered into the DIP Facility for US$125 million. Just Energy Ontario L.P., Just Energy Group Inc. and Just Energy (U.S.) Corp. are the borrowers under the DIP Facility and are supported by guarantees of certain subsidiaries and affiliates and secured by a super-priority charge against and attaching to the property that secures the obligations arising under the $335 million Credit Facility, created by the Court Order. The DIP Facility has an interest rate of 13%, paid quarterly in arrears. The DIP Facility terminates at the earlier of: (a) December 31, 2021, (b) the implementation date of the CCAA plan, (c) the lifting of the stay in the CCAA proceedings or (d) the termination of the CCAA proceedings. On March 9, 2021, the Company borrowed US$100 million and borrowed the remaining US$25 million on April 6, 2021. For consideration for making the DIP Facility available, the Company paid a 1% origination fee and a 1% commitment fee. (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 payable monthly. Filter Group did not file under the CCAA and accordingly, the stay does not apply to Filter Group and any amounts outstanding under the loan payable to Home Trust Company. (c) On March 18, 2021, Just Energy Ontario L.P, Just Energy (U.S.) Corp. and Just Energy Group Inc. entered into an Accommodation and Support Agreement (the “Lender Support Agreement”) with the lenders under the $335 million Credit Facility. Under the Lender Support Agreement, the lenders agreed to allow issuance or renewals of Letters of Credit under the $335 million Credit Facility during the pendency of the CCAA proceedings within certain restrictions. In return, the Company has agreed to continue paying interest and fees at the non-default rate on the outstanding advances and Letters of Credit under the $335 million Credit Facility. The amount of Letters of Credit that may be issued is limited to the greater of $46.1 million (excluding the Letters of Credit guaranteed by Export Development Canada under its Account Performance Security Guarantee Program), plus any amount the Company has repaid; and $125 million. As part of the September Recapitalization, Just Energy extended the $335 million 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 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 the Filter Group. 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 a result of the CCAA filing, the borrowers are in default under the Credit Facility. However, any potential actions by the lenders have been stayed pursuant to the Court Order. In addition, pursuant to the Lender Support Agreement, the lenders have agreed to continue to provide access to the issuance of Letters of Credit. As at March 31, 2021, the Company had Letter of Credit capacity of $4.5 million available. The outstanding Advances are all Prime rate advances 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%. As at March 31, 2021, the Canadian prime rate was 2.45% and the U.S. prime rate was 3.25%. As at March 31, 2021, $227.2 million has been drawn against the facility, $41.7 of letters of credit outstanding has been issued under the Canadian and U.S. facilities and $57.7 of Letters of Credit are outstanding under the LC Facility. As a result of the CCAA filing, the Credit Facility has been reclassified to short-term reflecting the potential acceleration of the debt allowed under the Credit Facility. Additionally, all deferred debt issue costs have been accelerated in the period ended March 31, 2021 to reflect the current classification and presented in Reorganization costs in the Consolidated Statements of Loss. (d) As part of the September 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%. The balance at March 31, 2021 includes an accrual of $13.9 million for interest payable on the notes. As a result of the CCAA filing, the Company is in default under the 10.25% Term Loan, as described below. However, any potential actions by the lenders under the 10.25% Term Loan have been stayed pursuant to the Court Order, and the Company is not issuing additional notes equal to the capitalized interest. As a result, the prepayment fee has been accelerated and accrued and is presented in the Reorganization cost on the Consolidated Statement of Loss. (e) As part of the September Recapitalization, Just Energy issued $15 million principal amount of 7.0% subordinated notes (“7.0% 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. The balance at March 31, 2021 includes an accrual of $0.4 million for capitalized interest payable on the notes. The 7.0% 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. As a result of the CCAA filing, the Company is in default under the 7.0% Subordinated Notes’ Trust Indenture agreement. However, any potential actions by the lenders under the 7.0% Subordinated Notes have been stayed pursuant to the Court Order and the Company is not issuing additional notes equal to the capitalized interest. Given this acceleration option, the 7.0% Subordinated Notes have been classified as current. Additionally, all deferred debt issue costs have been accelerated to the period ended March 31, 2021 to reflect the current classification and presented in Reorganization costs in the Consolidated Statements of Loss. (f) As part of the September Recapitalization, the 8.75% loan was exchanged for its pro-rata share of the 10.25% term loan and 786,982 common shares. The 8.75% loan had US$207.0 million outstanding plus accrued interest. (g) As part of the September Recapitalization, the 6.5% $100M convertible debentures were exchanged for 3,592,069 common shares along with its pro-rata share of the 7.0% Subordinated Notes and the payment of accrued interest. (h) As part of the September 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% Subordinated Notes and the payment of accrued interest. (i) As part of the September 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 at the time of the September Recapitalization. (j) Supplier finance and other costs for the quarter ended March 31, 2021 primarily consists of charges for extended payment terms. An amount of $3 million was accrued but not paid as at March 31, 2021. |
REPORTABLE BUSINESS SEGMENTS
REPORTABLE BUSINESS SEGMENTS | 12 Months Ended |
Mar. 31, 2021 | |
REPORTABLE BUSINESS SEGMENTS | |
REPORTABLE BUSINESS SEGMENTS | 16. Just Energy’s reportable segments are the Mass Market segment and the Commercial segment. The chief operating decision maker monitors the operational results of the Mass Market 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. 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 year ended March 31, 2021: Corporate and shared Mass Market Commercial services Consolidated Sales $ 1,530,617 $ 1,209,420 $ — $ 2,740,037 Cost of goods sold 2,915,079 1,597,087 — 4,512,166 Gross margin (1,384,462) (387,667) — (1,772,129) Depreciation and amortization 20,342 3,587 — 23,929 Administrative expenses 35,403 16,673 90,315 142,391 Selling and marketing expenses 107,932 71,589 — 179,521 Other operating expenses 29,898 10,854 — 40,752 Segment loss $ (1,578,037) $ (490,370) $ (90,315) $ (2,158,722) Finance costs — — — (86,620) Restructuring costs — — — (7,118) Gain on Recapitalization transaction, net — — — 51,360 Unrealized gain on derivative instruments and other — — — 91,736 Realized gain on derivative instruments — — — 1,877,339 Impairment of goodwill, intangible assets and other — — — (114,990) Other expense, net — — — (1,951) Reorganization costs — — — (41,623) Provision for income taxes — — — (2,308) Loss from continuing operations — — — (392,897) Profit from discontinued operations — — — 468 Loss for the year — — — $ (392,429) Capital expenditures $ 10,382 $ 1,173 $ — $ 11,555 As at March 31, 2021 Total goodwill $ 163,770 $ — $ — $ 163,770 For the year ended March 31, 2020: Corporate and shared Mass Market Commercial services Consolidated Sales $ 1,757,245 $ 1,396,407 $ — $ 3,153,652 Cost of goods sold 1,285,122 1,232,177 2,517,299 Gross margin 472,123 164,230 — 636,353 Depreciation and amortization 38,224 3,424 — 41,648 Administrative expenses 37,780 20,262 109,894 167,936 Selling and marketing expenses 141,548 79,272 — 220,820 Other operating expenses 84,271 8,029 — 92,300 Segment profit (loss) $ 170,300 $ 53,243 $ (109,894) $ 113,649 Finance costs — — — (106,945) Unrealized loss on derivative instruments and other — — — (213,417) Realized loss of derivative instruments — — — (24,386) Other income, net — — — 32,660 Impairment of goodwill, intangible assets and other — — — (92,401) Provision for income taxes — — — 7,393 Loss from continuing operations — — — $ (298,233) Loss from discontinued operations — — — (11,426) Loss for the year — — — (309,659) As at March 31, 2020 Total goodwill $ 172,429 $ 100,263 $ — $ 272,692 For the year ended March 31, 2019 Corporate and shared Mass Market Commercial services Consolidated Sales $ 2,010,054 $ 1,431,338 $ — $ 3,441,392 Cost of goods sold 1,523,090 1,239,731 2,762,821 Gross margin 486,964 191,607 — 678,571 Depreciation and amortization 24,906 2,289 — 27,195 Administrative expenses 42,573 32,377 90,378 165,328 Selling and marketing expenses 142,560 69,178 — 211,738 Restructuring costs 2,741 3,289 8,814 14,844 Other operating expenses 123,798 5,406 — 129,204 Segment profit (loss) $ 150,386 $ 79,068 $ (99,192) $ 130,262 Finance costs (87,779) Unrealized loss on derivative instruments and other (87,459) Realized loss on derivative instruments (83,776) Other income, net 2,312 Provision for income taxes 11,832 Loss from continuing operations $ (138,272) Loss from discontinued operations (128,259) Loss for the year (266,531) Capital expenditures $ 39,474 $ 4,068 $ — $ 43,542 As at March 31, 2019 Total goodwill $ 181,358 $ 158,563 $ — $ 339,921 Sales from external customers The revenue is based on the location of the customer. As at As at As at March 31, 2021 March 31, 2020 March 31, 2019 Canada $ 303,666 $ 509,910 $ 613,944 U.S. 2,436,371 2,643,742 2,827,449 Total $ 2,740,037 $ 3,153,652 $ 3,441,393 Non-current assets Non-current assets by geographic segment consist of property and equipment and intangible assets and are summarized as follows: As at March 31, 2021 As at March 31, 2020 Canada $ 178,802 $ 233,678 U.S. 73,518 166,074 Total $ 252,320 $ 399,752 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2021 | |
INCOME TAXES | |
INCOME TAXES | 17. (a) Current tax expense $ 2,697 $ 7,047 $ 7,622 Deferred tax expense (benefit) Origination and reversal of temporary differences $ (100,900) $ (90,459) $ (35,825) Expense arising from previously unrecognized tax loss or temporary difference 100,511 90,805 40,035 Deferred tax expense (389) 346 4,210 Provision for income taxes $ 2,308 $ 7,393 $ 11,832 (b) Loss before income taxes $ (390,589) $ (290,840) $ (126,440) Combined statutory Canadian federal and provincial income tax rate 26.50 % 26.50 % 26.50 % Income tax recovery based on statutory rate $ (103,506) $ (77,073) $ (33,507) Increase (decrease) in income taxes resulting from: Expense of mark to market loss and other temporary differences not recognized $ 100,511 $ 90,805 $ 40,035 Variance between combined Canadian tax rate and the tax rate applicable to foreign earnings (5,589) (5,554) (3,841) Other permanent items 10,892 (785) 9,145 Total provision for income taxes $ 2,308 $ 7,393 $ 11,832 (c) Recognized net deferred income tax assets and liabilities are attributed to the following: ar Tax losses and excess of tax basis over book basis 71,607 23,191 Total deferred income tax assets 71,607 23,191 Offset of deferred income taxes (70,612) (22,550) Net deferred income tax assets $ 995 $ 641 Book to tax differences on other assets (70,612) (18,367) Convertible debentures — (4,183) Total deferred income tax liabilities (70,612) (22,550) Offset of deferred income taxes 70,612 22,550 Net deferred income tax liabilities $ — $ — (d) As at Recognized in Recognized As at April 1, 2020 profit or loss in OCI Other March 31, 2021 Book to tax differences 4,824 (3,794) — (35) 995 Convertible debentures (4,183) 4,183 — — — $ 641 $ 389 $ — $ (35) $ 995 ar As at Recognized in Recognized As at April 1, 2019 profit or loss in OCI Other March 31, 2020 Partnership income deferred for tax $ (3,542) $ 3,542 $ — $ — $ — Book to tax differences 27,316 (23,364) 872 — 4,824 Mark to market (gains) losses on derivative instruments (17,586) 17,586 — — — Convertible debentures (6,073) 1,890 — — (4,183) $ 115 $ (346) $ 872 $ — $ 641 (e) Deferred income tax assets not reflected as at March 31 are as follows: Mark to market losses on derivative instruments $ 10,886 $ 31,897 Excess of tax over book basis 74,699 47,038 The Company has tax losses of $688 million (2020 - $381 million) available for carryforward (recognized and unrecognized) which are set to expire starting 2028 until 2041. |
SHAREHOLDERS' CAPITAL
SHAREHOLDERS' CAPITAL | 12 Months Ended |
Mar. 31, 2021 | |
SHAREHOLDERS' CAPITAL | |
SHAREHOLDERS' CAPITAL | 18. Just Energy is authorized to issue an unlimited number of common shares 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: As at As at March 31, 2021 March 31, 2020 Shares Amount Shares Amount Common shares: Issued and outstanding Balance, beginning of year 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 year 48,078,637 $ 1,537,863 4,594,371 $ 1,099,864 Preferred shares: Balance, beginning of year 4,662,165 $ 146,965 4,662,165 $ 146,965 Exchanged to common shares (4,662,165) (146,965) — — Balance, end of year — $ — 4,662,165 $ 146,965 Shareholders' capital 48,078,637 $ 1,537,863 9,256,536 $ 1,246,829 Just Energy defines capital as shareholders’ equity (excluding accumulated other comprehensive income) and long-term debt. Just Energy’s objectives when managing capital are to maintain flexibility by: (i) Enabling it to operate efficiently; and (ii) Providing liquidity and access to capital for growth opportunities; Just Energy manages the capital structure and adjusts to it in light of changes in economic conditions and the risk characteristics of the underlying assets. The Board of Directors does not establish quantitative return on capital criteria for management, but rather promotes year-over-year sustainable and profitable growth. Just Energy is not subject to any externally imposed capital requirements other than financial covenants in its long-term debts, and as at March 31, 2020 and 2019, all of these covenants had been met. However due to the CCAA filing these covenants were stayed for 2021. (b) In the second quarter of fiscal 2020, the Company made the decision to suspend its dividend on common shares. For the year ended March 31, 2021, dividends of $nil (2020 - $0.125) per common share were declared by Just Energy. These dividends amounted to $18.7 million for the year ended March 31, 2020. Because of the dividend suspension, distributions related to the dividends also ceased. As a result of the September Recapitalization, the preferred shares were exchanged for common shares and there were no dividends for the year ended March 31, 2021. For the year ended March 31, 2020, dividends of US$1.0625 per preferred share were declared by Just Energy in the amount of $6.6 million. (c) On September 28, 2020, the Company completed the September Recapitalization. The September 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 the 7.0% Subordinated Notes”). The 7.0% 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 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 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 common share; · The issuance of $3.67 million of common shares by way of an additional private placement to the Company’s 8.75% term loan lenders at the same subscription price available to all securityholders pursuant to the new equity subscription offering; · 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 September 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 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 September 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. |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS | 12 Months Ended |
Mar. 31, 2021 | |
SHARE-BASED COMPENSATION PLANS | |
SHARE-BASED COMPENSATION PLANS | 19. On September 28, 2020, the Board of Directors of Just Energy approved a new compensation plan referred to as the Just Energy Group Inc., 2020 Equity Compensation Plan (“Equity Plan”). The Equity Plan includes options, RSUs, DSUs and PSUs. Under the Equity Plan, the Company is required to reserve a certain number of (i) Options issuable and (ii) other securities issuable under the Plan. The Equity plan includes a 5% cap on the total number of equity-based securities that can be issued (5% of the issued and outstanding common shares). Accordingly, there is a separate record for options and a separate record for all the other securities (RSUs, DSUs, PSUs) for TSX purposes. Amounts reserved for the various security types can be amended at any time. [The 2020 Equity Compensation Plan was amended on June 25, 2021 to comply with the requirements of the TSX Venture Exchange. The cap was adjusted to XX.] (a) Stock option plan Under the Equity Plan, 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 five-day volume weighted trading price as of October 9, 2020. The estimated market price of the options was $5.70 based on the Black Scholes option pricing model. The options vest over a three-year period and the option value is being amortized as share-based compensation over the vesting period of the options. (b) Restricted Share Units Under the Equity Plan, 23,513 RSU’s which were granted to one employee based on the five-day volume weighted trading price as of October 9, 2020 of $8.37 with vesting date of December 1, 2020. Related share-based compensation was recognized in its entirety in the current year. The RSUs were exchanged/cancelled in December 2020. (c) Under the Equity Plan, 190,983 DSUs were granted to company directors in lieu of materially all their annual cash retainers based on the 5-day volume weighted trading price as of October 9, 2020 of $8.37. These units were vested immediately on October 12, 2020 and expensed in the current year. There were an additional 4,054 DSUs issued on February 3, 2021. (d) The Equity Plan also includes the issuance of PSU’s. The Board of Directors, in its sole discretion, determine the performance period applicable to each grant of PSU’s at the time of such grant. Unless otherwise specified by the Board of Directors, the performance period applicable to a grant of a period is 36 months starting on the first day and ending on the last day of the Company’s fiscal year. As at March 31, 2021, no PSUs were granted to any employees. Pre-Recapitalization Stock-based Compensation Plan Just Energy granted awards under its 2010 share option plan (formerly the 2001 Unit Option Plan) to directors, officers, full-time employees and service providers (non-employees) of Just Energy and its subsidiaries and affiliates. The Company’s previous stock-based compensation plan grants awarded under the 2010 RSGs Plan (formerly the 2004 unit appreciation rights) were in the form of fully paid RSGs to senior officers, employees and service providers of its subsidiaries and affiliates. The previous plan also granted awards under the 2013 performance bonus incentive plan (the “PBG Plan”) in the form of fully paid Performance Bonus Grants to senior officers, employees, consultants and service providers of its subsidiaries and affiliates. Additionally, the previous plan granted awards under its 2010 Directors’ Compensation Plan (formerly the 2004 Directors’ deferred unit grants, “DUGs”) to all independent directors on the basis that each director is required to annually receive 15% of their compensation entitlement in Deferred Share Grants. As a result of the September Recapitalization, all existing restricted share grants, performance bonus grants, and deferred share grants have been exercised and/or cancelled. |
OTHER EXPENSES
OTHER EXPENSES | 12 Months Ended |
Mar. 31, 2021 | |
OTHER EXPENSES | |
OTHER EXPENSES | 20. (a) Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2019 Amortization of intangible assets $ 16,166 $ 27,997 $ 22,680 Depreciation of property and equipment 7,763 13,651 4,515 Bad debt expense 34,260 80,050 123,288 Share-based compensation 6,492 12,250 5,916 $ 64,681 $ 133,948 $ 156,399 (b) Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2019 Wages, salaries and commissions $ 160,127 $ 211,457 $ 233,575 Benefits 14,755 22,218 22,315 $ 174,882 $ 233,675 $ 255,890 Employee expenses of $64.6 million and $110.3 million are included in administrative expense and selling and marketing expenses, respectively, in fiscal 2021 Consolidated Statements of Loss. Corresponding amounts of $80.3 million and $153.4 million, respectively, are reflected in the comparable year in fiscal 2020 and $93.8 million and $162.1 million, respectively, are reflected in the comparable year in fiscal 2019. |
PROVISIONS
PROVISIONS | 12 Months Ended |
Mar. 31, 2021 | |
PROVISIONS | |
PROVISIONS | 21. Year ended Year ended March 31, 2021 March 31, 2020 Balance, beginning of the period $ 1,529 $ 6,616 Provisions recorded this year 3,870 6,206 Provisions utilized this year (1,388) (1,563) Foreign exchange impact 2,775 (9,730) Balance, end of the period $ 6,786 $ 1,529 |
RESTRUCTURING COSTS
RESTRUCTURING COSTS | 12 Months Ended |
Mar. 31, 2021 | |
RESTRUCTURING COSTS | |
RESTRUCTURING COSTS | 22. For the year ended March 31, 2021, the Company incurred $7.1 million in restructuring costs in relation to restructuring its senior management team announced in September 2020. These costs include management costs, structural reorganization and employee-related costs. Approximately $2.5 million of this remains unpaid as at March 31, 2021 which is subject to compromise as described in Note 1. |
REORGANIZATION COSTS
REORGANIZATION COSTS | 12 Months Ended |
Mar. 31, 2021 | |
REORGANIZATION COSTS | |
REORGANIZATION COSTS | 23. For the year ended March 31, 2021, the Company incurred reorganization costs related to CCAA and Bankruptcy under Chapter 15 proceedings. These costs include legal and professional charges of $9.3 million incurred to obtain services for the proceedings. In addition, $26.9 million in the charges associated with early termination of certain agreements allowed by the CCAA filing and the acceleration of deferred financing costs and term payment for the long term debt subject to compromise and certain other related costs. |
PROFIT (LOSS) PER SHARE
PROFIT (LOSS) PER SHARE | 12 Months Ended |
Mar. 31, 2021 | |
PROFIT (LOSS) PER SHARE | |
PROFIT (LOSS) PER SHARE | 24. Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2019 BASIC EARNINGS (LOSS) PER SHARE Profit (loss) from continuing operations available to shareholders $ (392,897) $ (298,233) $ (138,272) Earnings (loss) from continuing operations available to (392,429) (309,659) (138,272) Basic weighted average shares outstanding 34,125,199 9,856,639 9,732,966 Basic earnings (loss) per share from continuing operations $ (11.51) $ (30.26) $ (14.21) Basic earnings (loss) per share available to shareholders $ (11.50) $ (31.42) $ (27.39) DILUTED EARNINGS (LOSS) PER SHARE Profit (loss) from continuing operations available to $ (392,897) $ (298,233) $ (138,272) Adjusted earnings (loss) from continuing operations available to $ (392,429) $ (298,233) $ (138,272) Basic weighted average shares outstanding 34,125,199 9,856,639 9,732,966 Dilutive effect of: Restricted share and performance bonus grants 33,430 80,761 73,030 Deferred share grants 6,437 8,841 4,331 Restricted share units 4,252 — — Deferred share units 87,926 — — Options 305,357 — — Shares outstanding on a diluted basis 34,562,601 1 9,946,241 1 9,810,327 1 Diluted earnings (loss) from continuing operations per share $ (11.51) $ (30.26) $ (14.21) Diluted earnings (loss) per share available to shareholders $ (11.50) $ (31.42) $ (27.39) 1 The assumed settlement of shares results in an anti-dilutive position; therefore, these items have not been included in the computation of dilutes earnings (loss) per share. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Mar. 31, 2021 | |
DISCONTINUED OPERATIONS | |
DISCONTINUED OPERATIONS | 25. 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 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 March 31, 2021, the remaining operations were classified as discontinued operations. In March 2021, the Company commenced insolvency proceedings for its German operations and is expected to be liquidated within the next 12 months. The tax impact on the discontinued operations is minimal. During the year ended March 31, 2021, Just Energy sold EdgePower Inc. resulting in a gain of $1.5 million and the results of which have been included in profit (loss) from discontinued operations. Assets, and liabilities associated with assets, classified as held for sale were as follows: As at As at March 31, 2021 March 31, 2020 ASSETS Current assets Cash and cash equivalents $ — $ 898 Current trade and other receivables, net — 4,978 Income taxes recoverable — 12 Other current assets — 1,140 — 7,028 Non-current assets Property and equipment — 38 Intangible assets — 545 ASSETS CLASSIFIED AS HELD FOR SALE $ — $ 7,611 Liabilities Current liabilities Trade and other payables $ — $ 4,823 Deferred revenue — 83 LIABILITIES ASSOCIATED WITH ASSETS CLASSIFIED AS HELD FOR SALE $ — $ 4,906 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 26. Commitments for each of the next five years and thereafter are as follows: As at March 31, 2021 Less than 1 year 1–3 years 4–5 years More than 5 years Total Gas, electricity and non- $ 1,339,637 $ 960,907 $ 183,269 $ 48,057 $ 2,531,870 Just Energy has entered into leasing contracts for office buildings and administrative equipment. These leases have a leasing period of between one and six years. Eight office leases, with a net balance of $1.3m, were terminated subsequent to the CCAA in April 2021. No purchase options are included in any major leasing contracts. Just Energy is also committed under long‑term contracts with customers to supply gas and electricity. These contracts have various expiry dates and renewal options. (a) Pursuant to separate arrangements with various insurance companies, 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 March 31, 2021 were $46.3 million. As at March 31, 2021, $27.8 million were backed by either cash collateral or letters of credit which are included below. As at March 31, 2021, Just Energy had total letters of credit outstanding in the amount of $99.4 million (Note 15(a)). (b) Corporate indemnities have been provided by Just Energy to all directors and certain officers of its subsidiaries and affiliates for various items including, but not limited to, all costs to settle suits or actions due to their association with Just Energy and its subsidiaries and/or affiliates, subject to certain restrictions. Just Energy has purchased directors’ and officers’ liability insurance to mitigate the cost of any potential future suits or actions as well as are entitled to a Priority Charge under the CCAA proceedings. Each indemnity, subject to certain exceptions, applies for so long as the indemnified person is a director or officer of one of Just Energy’s subsidiaries and/or affiliates. The maximum amount of any potential future payment cannot be reasonably estimated. (c) In the normal course of business, Just Energy and/or Just Energy’s subsidiaries and affiliates have entered into agreements that include guarantees in favour of third parties, such as purchase and sale agreements, leasing agreements and transportation agreements. These guarantees may require Just Energy and/or its subsidiaries to compensate counterparties for losses incurred by the counterparties as a result of breaches in representation and regulation or as a result of litigation claims or statutory sanctions that may be suffered by the counterparty as a consequence of the transaction. The maximum payable under these guarantees is estimated to be $67.7 million and are subject to compromise under the CCAA. (d) 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. On March 9, 2021, Just Energy filed for and received creditor protection pursuant to an order under the CCAA from the Ontario Superior Court of Justice (Commercial List) and similar protection under Chapter 15 of the Bankruptcy Code in the United States in connection with the material adverse financial impact of the Weather Event. 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 (the “Ohio 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 Ohio 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 and provided a bond to the Ohio Court to cover the potential damages. On August 31, 2020 the Appeals Court denied the appeal in a 2-1 decision. On February 2, 2021, Just Energy filed a petition for certiorari seeking the United States Supreme Court (the “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. On June 7, 2021, the Supreme Court denied Just Energy’s petition for certioriari. The Company accrued approximately $5.7 million in the last quarter of fiscal 2021 in connection with this matter and expects to make this payment promptly. 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. Pursuant to the CCAA proceedings, these proceedings have been stayed. 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. Pursuant to the CCAA proceedings, these proceedings have been stayed. Just Energy denies the allegations and will vigorously defend against these claims. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Mar. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 27. Parties are considered to be related if one party has the ability to control the other party or exercise influence over the other party in making financial or operating decisions. The definition includes subsidiaries and other persons. As part of the September Recapitalization transaction, an investment management firm that provided financing to the Company obtained over 10% of the common shares of the Company. Subsequent to the September Recapitalization Transaction, the investment management firm entered into a transaction with the Company to provide DIP financing at the time of CCAA filing. March 31, 2021 March 31, 2020 Salaries and benefits $ 3,953 $ 2,334 Share-based compensation expense, net 200 625 $ 4,153 $ 2,959 |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Mar. 31, 2021 | |
SUPPLEMENTAL CASH FLOW INFORMATION | |
SUPPLEMENTAL CASH FLOW INFORMATION | 28. (a) Net change in working capital As at As at As at March 31, 2021 March 31, 2020 March 31, 2019 Accounts receivable and unbilled revenue, net $ 60,602 $ 33,839 $ (35,427) Gas in storage 3,185 (3,234) (601) Prepaid expenses and deposits 50,270 (89,087) (128,911) Provisions 6,145 (4,607) 4,309 Trade and other payables (188,393) 106,271 174,958 Restricted cash 2,782 — — Adjustments required to reflect net cash receipts from gas sales (265) 812 4,186 $ (65,674) $ 43,994 $ 18,514 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Mar. 31, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 29. On June 21, 2021 House Bill 4492 ("HB 4492"), which provides a mechanism for recovery of certain costs incurred by various parties, including the Company, during the Weather Event through certain securitization structures, became law in Texas. HB 4492 addresses securitization of (i) ancillary service charges above $9,000/MWh during the Weather Event; (ii) reliability deployment price adders charged by the ERCOT during the Weather Event; and (iii) amounts owed to ERCOT due to defaults of competitive market participants, which were subsequently "short-paid" to market participants, including Just Energy, (collectively, the "Costs"). HB 4492 provides that ERCOT request that the Public Utility Commission of Texas (the "Commission") establish financing mechanisms for the payment of the Costs incurred by load-serving entities, including Just Energy, within 30 days. The details of the financing mechanism and the process to apply for recovery of the Costs are undetermined at this time. The Company continues to evaluate HB 4492. Based on current information, however, the Company estimates that if the Commission approves the financing provided for in HB 4492, Just Energy may receive up to approximately US $XX million. The total amount that the Company receives through the mechanisms authorized in HB 4492 may change materially based on a number of factors, including the details of the established financing order issued by the Commission, additional ERCOT resettlements, the outcome of the dispute resolution process initiated by the Company with ERCOT, the amount of funds applied for by all of the applicable parties, and or any potential litigation challenges. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Cash and cash equivalents and restricted cash | Cash and cash equivalents and restricted cash All highly liquid temporary cash investments with an original maturity of three months or less when purchased are cash equivalents. For the consolidated statements of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts. Restricted cash includes cash and cash equivalents, where the availability of cash to be exchanged or used to settle a liability is restricted by debt arrangements. |
Accrued gas receivable/accrued gas payable or gas delivered in excess of consumption/deferred revenue | Accrued gas receivable/accrued gas payable or gas delivered in excess of consumption/deferred revenue Accrued gas receivable from Just Energy’s customers is stated at fair value and results from customers consuming more gas than has been delivered by Just Energy to local distribution companies (“LDCs”). Accrued gas payable represents Just Energy’s obligation to the LDCs for the customers’ excess consumption, over what was delivered to the LDCs. Gas delivered to LDCs in excess of consumption by customers is stated at the lower of cost and net realizable value. Collections from customers in advance of their consumption of gas result in deferred revenue. Assuming normal weather and consumption patterns, during the winter months, customers will have consumed more than was delivered, resulting in the recognition of accrued gas receivable/accrued gas payable. In the summer months, customers will have consumed less than what was delivered, resulting in the recognition of gas delivered in excess of consumption/deferred revenue. This is applicable to the markets of Ontario, Manitoba, Quebec, Saskatchewan and Michigan. |
Gas in storage | Gas in storage Gas in storage represents the gas delivered to the LDCs in Illinois, Indiana, New York, Ohio, Maryland, California (gas) and Alberta. The balance will fluctuate as gas is injected into or withdrawn from storage. Gas in storage is valued at the lower of cost and net realizable value, with cost being determined based on market cost on a weighted average basis. Net realizable value is the estimated selling price in the ordinary course of business. |
Property and equipment | Property and equipment Property and equipment are stated at cost, net of any accumulated depreciation and impairment losses. Cost includes the purchase price and, where relevant, any costs directly attributable to bringing the asset to the location and condition necessary for its intended use and the present value of all dismantling and removal costs. Where major components of property and equipment have different useful lives, the components are recognized and depreciated separately. Just Energy recognizes, in the carrying amount, the cost of replacing part of an item when the cost is incurred and if it is probable that the future economic benefits embodied in the item can be reliably measured. Depreciation is provided over the estimated useful lives of the assets as follows: Asset category Depreciation method Rate/useful life Furniture and fixtures Declining balance 20 % Office equipment Declining balance 20 % Computer equipment Declining balance 30 % Leasehold improvements Straight-line Shorter of useful life and lease term Premise assets Straight-line 4–7 years An item of property and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset is included in the Consolidated Statements of Loss. The useful lives and methods of depreciation are reviewed at each financial year-end and adjusted prospectively, if appropriate. |
Business combinations | Business combinations All identifiable assets acquired and liabilities assumed are measured at the acquisition date at fair value. The Company records all identifiable intangible assets including identifiable assets that had not been recognized by the acquiree before the business combination. Any excess of the cost of acquisition over the Company’s share of the net fair value of the identifiable assets acquired and liabilities assumed is recorded as goodwill. During the measurement period (which is within one year from the acquisition date), Just Energy may adjust the amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date. Adjustments related to facts and circumstances that did not exist as at the Consolidated statement of financial position dates are taken to the Consolidated Statements of Loss. The Company records acquisition-related costs as expenses in the periods in which the costs are incurred with the exception of certain costs relating to registering and issuing debt or equity securities which are accounted for as part of the financing. Non-controlling interest is recognized at its proportionate share of the fair value of identifiable assets and liabilities, unless otherwise indicated. |
Goodwill | Goodwill Goodwill is initially measured at cost, which is the excess of the cost of the business combination over Just Energy’s share in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities. After initial recognition, goodwill is measured at cost, less impairment losses. For the purpose of impairment testing, goodwill is allocated to each of Just Energy’s operating segments that are expected to benefit from the synergies of the combination, irrespective of whether other assets and liabilities of the acquiree are assigned to those segments. |
Intangible assets | Intangible assets Intangible assets acquired outside of a business combination are measured at cost on initial recognition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and/or accumulated impairment losses. Intangible assets with finite useful lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization method and amortization period of an intangible asset with a finite useful life are reviewed at least annually. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense related to intangible assets with finite lives is recognized in the Consolidated Statements of Loss. Internally developed intangible assets are capitalized when the product or process is technically and commercially feasible, the future economic benefit is measurable, Just Energy can demonstrate how the asset will generate future economic benefits and Just Energy has sufficient resources to complete development. The cost of an internally developed intangible asset comprises all directly attributable costs necessary to create, produce and prepare the asset to be capable of operating in the manner intended by management. The goodwill and certain brands are considered to have indefinite lives and are not amortized, rather tested annually for impairment or when there are indications that these assets may be impaired. The assessment of indefinite life is reviewed annually. The Filter Group brand is treated as a finite life asset and amortized due to its history of rebranding. Gains or losses arising from disposal of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the Consolidated Statements of Loss when the asset is derecognized. Intangible asset category Amortization method Rate/useful life Customer relationships Straight-line 10 years Technology Straight-line 3–5 years Brand (finite life) Straight-line 10 years |
Impairment of non-financial assets | Impairment of non-financial assets Just Energy assesses whether there is an indication that an asset may be impaired at each reporting date. If such an indication exists or when annual testing for an asset is required, Just Energy estimates the asset’s recoverable amount. The recoverable amounts of goodwill and intangible assets with an indefinite useful life are tested annually. The recoverable amount is the higher of an asset’s or cash-generating unit’s (“CGU”) or group of CGU’s fair value less costs to sell and its value-in-use. Value-in-use is determined by discounting estimated future pre-tax cash flows using a pre-tax discount rate that reflects the current market assessment of the time value of money and the specific risks of the asset. The recoverable amount of assets that do not generate independent cash flows is determined based on the CGU to which the asset belongs. An impairment loss is recognized if an asset’s carrying amount or that of the CGU to which it is allocated is higher than its recoverable amount. Impairment losses of individual CGUs are charged against the value of assets in proportion to their carrying amount. For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such an indication exists, Just Energy estimates the asset’s or CGU’s recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of amortization, had no impairment loss been recognized for the asset in prior years. Such a reversal is recognized in the Consolidated Statements of Loss. Goodwill is tested for impairment annually and when circumstances indicate that the carrying value may be impaired. Goodwill is tested at the operating segment level as that is the lowest level at which goodwill is monitored. Impairment is determined for goodwill by assessing the recoverable amount of each operating segment to which the goodwill relates. Where the recoverable amount of the operating segment is less than its carrying amount, an impairment loss is recognized. Impairment losses relating to goodwill cannot be reversed in future periods. |
Leases | Leases A lease is an arrangement whereby the lessor conveys to the lessee, in return for a payment or series of payments, the right to use an asset for an agreed period of time. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, within a range of two years to six years. The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement at the inception date and whether fulfillment of the arrangement is dependent on the use of a specific asset or assets, or the arrangement conveys a right to use the asset. Lease liabilities At the commencement date of the lease, Just Energy recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable. The lease payments also include payments of penalties for terminating the lease, if the lease term reflects the exercising of the option to terminate. Lease liabilities are grouped into other liabilities on the Consolidated Statement of Financial Position. In calculating the present value of lease payments, Just Energy uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease. Just Energy as a lessee Just Energy applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term. |
Financial instruments | Financial instruments (i) Recognition A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Regular purchases and sales of financial assets are recognized on the trade date, being the date on which Just Energy commits to purchase or sell the asset. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. (ii) Classification Just Energy classified its financial assets and liabilities in the following measurement categories: Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss include financial assets held for trading and financial assets designated upon initial recognition as at fair value through profit or loss. This category includes derivative financial instruments entered into that are not designated as hedging instruments in hedge relationships as defined by IFRS 9, Financial Instruments (“IFRS 9”). Included in this class are primarily physical delivered energy contracts, for which the own-use exemption could not be applied, financially settled energy contracts and foreign currency forward contracts. An analysis of fair values of financial instruments and further details as to how they are measured are provided in Note 12. Related realized and unrealized gains and losses are included in the consolidated statements of loss. Financial assets classified at fair value through other comprehensive income Financial assets at fair value through OCI are equity instruments that Just Energy has elected to recognize the changes in fair value through OCI. They were recognized initially at fair value in the consolidated statements of financial position and were remeasured subsequently at fair value with gains and losses arising from changes in fair value recognized directly in equity and presented in OCI. Amortized Cost Assets held for collection of contractual cash flows that represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a financial asset is recognized in profit or loss when the asset is derecognized or impaired. Trade and other receivables, trade and other payables are included in this category. Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are acquired for the purpose of selling in the near term. This category includes derivative financial instruments entered into by Just Energy that are not designated as hedging instruments in hedge relationships as defined by IFRS 9. Included in this class are primarily physically delivered energy contracts, for which the own-use exemption could not be applied, financially settled energy contracts and foreign currency forward contracts. Gains or losses on liabilities held for trading are recognized in the consolidated statements of loss. Other financial liabilities at amortized cost Other financial liabilities are measured at amortized cost using the effective interest rate method. Financial liabilities include long-term debt issued and are initially measured at fair value. Transaction costs related to the long-term debt instruments are included in the value of the instruments and amortized using the effective interest rate method. The effective interest expense is included in finance costs in the consolidated statement of loss. (iii) Measurement At initial recognition, Just Energy measures a financial asset at its fair value. In the case of a financial asset not categorized as fair value through profit or loss (“FVTPL”), transaction costs that are directly attributable to the acquisition of the financial asset are included in measurement at initial recognition. Transaction costs of financial assets carried at FVTPL are expensed in profit or loss. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. Subsequent measurement of financial assets depends on Just Energy’s business objective for managing the asset and the cash flow characteristics of the asset. |
Derivative instruments | Derivative instruments Just Energy enters into fixed-term contracts with customers to provide electricity and gas at fixed prices. These customer contracts expose Just Energy to changes in consumption as well as changes in the market prices of gas and electricity. To reduce its exposure to movements in commodity prices, Just Energy enters into contracts with suppliers that expose the Company to changes in prices for the purchase and sale of power and natural gas. These contracts are treated as derivatives as they do not meet the own-use criteria under IAS 32, Financial Instruments: Presentation. The primary factors affecting the fair value of derivative instruments at any point in time are the volume of open derivative positions and the changes of commodity market prices. Prices for power and natural gas are volatile, which can result in material changes in the fair value measurements reported in Just Energy’s consolidated financial statements in the future. Just Energy analyzes all its contracts, of both a financial and non-financial nature, to identify the existence of any “embedded” derivatives. Embedded derivatives are accounted for separately from the underlying contract at the inception date when their economic characteristics are not closely related to those of the host contract and the host contract is not carried as held for trading or designated as fair value through profit or loss. These embedded derivatives are measured at fair value with changes in fair value recognized in profit or loss. All derivatives are recognized at fair value on the date on which the derivative is entered into and are remeasured to fair value at each reporting date. Derivatives are carried in the consolidated statements of financial position as other financial assets when the fair value is positive and as other financial liabilities when the fair value is negative. Just Energy does not utilize hedge accounting; therefore, changes in the fair value of these derivatives are recorded directly to the consolidated statements of loss and are included within unrealized gain on derivative instruments. The 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 are accounted for as derivatives at fair value through profit or loss. These contracts are physically settled by the underlying non-financial item. These are recognized as a corresponding adjustment to cost of goods sold or inventory when the contract is physically settled. These realized gains and losses on financial swap contracts are recorded in the line item realized loss on derivative instruments in the Consolidated Statement of Loss. (i) Derecognition A financial asset is derecognized when the rights to receive cash flows from the asset have expired or when Just Energy has transferred its rights to receive cash flows from the asset. A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized in the consolidated statements of loss. (ii) Impairment Just Energy assesses on a forward-looking basis the expected credit loss (“ECL”) associated with its assets carried at amortized cost, including other receivables. For trade receivables, other receivables and unbilled revenue only, Just Energy applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the receivables. Trade receivables are reviewed qualitatively to determine if they need to be written off. (vi) Financial assets and financial liabilities are offset, and the net amount reported in the consolidated statements of financial position if, and only if, there is currently an enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously. |
Fair value of financial instruments | Fair value of financial instruments Fair value 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). The fair value of financial instruments that are traded in active markets at each reporting date is determined by reference to quoted market prices, without any deduction for transaction costs. For financial instruments not traded in an active market, the fair value is determined using appropriate valuation techniques that are recognized by market participants. Such techniques may include using recent arm’s-length market transactions, reference to the current fair value of another instrument that is substantially the same, discounted cash flow analysis, or other valuation models. An analysis of fair values of financial instruments and further details as to how they are measured are provided in Note 12. |
Revenue recognition | Revenue recognition Just Energy has identified that the material performance obligation is the provision of gas and electricity to customers, which is satisfied over time throughout the contract term. Just Energy utilizes the output method to recognize revenue based on the units of gas and electricity delivered and billed to the customer each month and Just Energy has elected to adopt the practical expedient to recognize revenue in the amount to which the entity has a right to invoice, as the entity has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the entity’s performance to date. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates and sales taxes. The Company accounts for Transmission and Distribution Service Provider (“TDSP”) charges charged to electricity customers on a gross basis whereby TDSP charges to the customer and payments to the service provider are presented in sales and cost of goods sold, respectively. In Alberta, Texas, Illinois, California (gas), and Ohio, Just Energy assumes the credit risk associated with the collection of customer accounts. Credit review processes have been established to manage the customer default rate. Management factors default from credit risk into its margin expectations for all of the above-noted markets. |
Foreign currency translation | Foreign currency translation Functional and presentation currency Items included in the Consolidated Financial Statements of each of the Company’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). For U.S.-based subsidiaries, this is USD. The Consolidated Financial Statements are presented in Canadian dollars, which is the parent Company’s presentation and functional currency. Transactions Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the Consolidated Statements of Loss. Translation of foreign operations The consolidated results and Consolidated Statement of Financial Position of all the group entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows: · Assets and liabilities for each Consolidated Statements of Financial Position presented are translated at the closing rate as at the date of that Consolidated Statements of Financial Position; and · Income and expenses for each Consolidated Statements of Loss are translated at the exchange rates prevailing at the dates of the transactions. On consolidation, exchange differences arising from the translation of the net investment in foreign operations are recorded in OCI. When a foreign operation is partially disposed of or sold, exchange differences that were recorded in accumulated other comprehensive income are recognized in the Consolidated Statements of Loss as part of the gain or loss on sale. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. |
Earnings (loss) per share amounts | Earnings (loss) per share amounts The computation of earnings (loss) per share is based on the weighted average number of shares outstanding during the year. Diluted earnings (loss) per share is computed in a similar way to basic earnings (loss) per share except that the weighted average number of shares outstanding is increased to include additional shares introduced after the new equity compensation plan assuming the exercise of stock options, restricted share units (“RSUs”), performance share units (“PSUs”) and deferred share units (“DSUs”). These outstanding shares are also adjusted for any pre-September Recapitalization restricted share grants (“RSGs”), performance bonus incentive grants (“PBGs”), deferred share grants (“DSGs”) and convertible debentures, if dilutive. |
Share-based compensation plans | Share-based compensation plans Equity-based compensation liability Share-based compensation plans are equity-settled transactions. The cost of share-based compensation is measured by reference to the fair value at the date on which it was granted. Awards are valued at the grant date and are not adjusted for changes in the prices of the underlying shares and other measurement assumptions. The cost of equity-settled transactions is recognized, together with the corresponding increase in equity, over the period in which the performance or service conditions are fulfilled, ending on the date on which the relevant grantee becomes fully entitled to the award. The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting period reflects the extent to which the vesting period has expired and Just Energy’s best estimate of the number of the shares that will ultimately vest. The expense or credit recognized for a period represents the movement in cumulative expense recognized as at the beginning and end of that period. When units are exercised or exchanged, the amounts previously credited to contributed deficit are reversed and credited to shareholders’ capital. |
Employee future benefits | Employee future benefits In Canada, Just Energy offers a long-term wealth accumulation plan (the ‟Canadian Plan”) for all permanent full-time and permanent part-time employees (working more than 26 hours per week). For U.S. employees, Just Energy has established a long-term savings plan (the "U.S. Plan") for all permanent full-time and part-time employees (working more than 30 hours per week) of its subsidiaries. Participation in the plans in Canada or the U.S. is voluntary. Obligations for contributions to the Canadian and U.S. Plans are recognized as an expense in the Consolidated Statements of Loss when the contribution is made by the Company. |
Income taxes | Income taxes Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from, or paid to, the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in the countries where Just Energy operates and generates taxable income. Current income taxes relating to items recognized directly in OCI or equity are recognized in OCI or equity and not in profit or loss. Management periodically evaluates positions taken in the tax returns with respect to situations where applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Just Energy follows the liability method of accounting for deferred income taxes. Under this method, deferred income tax assets and liabilities are recognized for the estimated tax consequences attributable to the temporary differences between the carrying value of the assets and liabilities in the Consolidated Financial Statements and their respective tax bases. Deferred income tax liabilities are recognized for all taxable temporary differences except: · Where the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and · In respect of taxable temporary differences associated with investments in subsidiaries, where the timing of the reversal of the temporary differences can be controlled by the parent and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred income tax assets are recognized for all deductible temporary differences, the carryforward of unused tax credits and any unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carryforward of unused tax credits and unused tax losses, can be utilized except: · Where the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and · In respect of deductible temporary differences associated with investments in subsidiaries, deferred income tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized. The carrying amount of deferred income tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. Unrecognized deferred income tax assets are reassessed at the end of each reporting period and are recognized to the extent that it has become probable that future taxable profits will allow the deferred income tax asset to be recovered. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized, or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred income taxes relating to items recognized in cumulative translation adjustment or equity is recognized in OCI or equity and not in profit or loss. Deferred income tax assets and deferred income tax liabilities are offset, if a legally enforceable right exists to set off current income tax assets against current income tax liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority. |
Provisions and restructuring | Provisions and restructuring Provisions are recognized when Just Energy has a present obligation, legal or constructive, as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where Just Energy expects some or all provisions to be reimbursed, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the Consolidated Statements of Loss, net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. If there are uncertainties on the timing and amounts of the obligation, the provisions are not discounted and presented in full based on the best estimate. Restructuring provisions comprise activities including termination or relocation of a business, management structural reorganization and employee-related costs. Incremental costs directly associated with the restructuring are included in the restructuring provision. Costs associated with ongoing activities, including training or relocating continuing staff, are excluded from the provision. Measurement of the provision is at the best estimate of the anticipated costs to be incurred. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost in the Consolidated Statements of Loss. |
Selling and marketing expense | Selling and marketing expenses Commissions and various other costs related to obtaining and renewing customer contracts are charged to income in the period incurred except as disclosed below: Commissions related to obtaining and renewing customer contracts are paid in one of the following ways: all or partially up front or as a residual payment over the term of the contract. If the commission is paid all or partially up front, it is recorded as a customer acquisition cost in other current or non-current assets and expensed in selling and marketing expenses over the term for which the associated revenue is earned. If the commission is paid as a residual payment, the amount is expensed as earned. Just Energy capitalizes the incremental acquisition costs of obtaining a customer contract as an asset as these costs would not have been incurred if the contract had not been obtained and these costs are amortized in selling and marketing expense over the life of the contract. When the term of the contract is one year or less, the incremental costs incurred to obtain the customer contracts are expensed when incurred. Just Energy expenses advertising costs as incurred. |
Green provision certificates | Green provision and certificates Just Energy is a retailer of green energy and records a provision to its regulators as green energy sales are recognized. A corresponding cost is included in cost of goods sold. Just Energy measures its provision based on the extent of green certificates that it holds or has committed to purchase and has recorded this obligation net of its green certificates. Any provision balance in excess of the green certificates held or that Just Energy has committed to purchase is measured at fair value. Green certificates are purchased by Just Energy to settle its obligation with the regulators. Any green energy-related derivatives are forward contracts and are recognized in accordance with the accounting policy discussed under “Financial Instruments” above. |
Non-current asets held for sale and discontinued operations | Non-current assets held for sale and discontinued operations Just Energy classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. The criteria for the held for sale classification is regarded as met only when the sale is highly probable, and the asset or disposal group is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification. Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as profit or loss after tax from discontinued operations in the Consolidated Statements of Loss. Property and equipment and intangible assets are not depreciated or amortized once classified as held for sale. |
ORGANIZATION (Tables)
ORGANIZATION (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
ORGANIZATION | |
Summary of obligations that are subject to potential compromise | As at March 31, 2021, in connection with the CCAA proceedings, the Company identified the following obligations that are subject to potential compromise: Amounts in 000's Trade and other payables $ 505,736 Current portion of long term debt 530,700 Total liabilities subject to compromise $ 1,036,436 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of useful lives, property, plant and equipment | Asset category Depreciation method Rate/useful life Furniture and fixtures Declining balance 20 % Office equipment Declining balance 20 % Computer equipment Declining balance 30 % Leasehold improvements Straight-line Shorter of useful life and lease term Premise assets Straight-line 4–7 years |
Schedule of useful lives, intangible assets | Intangible asset category Amortization method Rate/useful life Customer relationships Straight-line 10 years Technology Straight-line 3–5 years Brand (finite life) Straight-line 10 years |
CORRECTION OF PRIOR PERIOD FI_2
CORRECTION OF PRIOR PERIOD FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
CORRECTION OF PRIOR PERIOD FINANCIAL STATEMENTS | |
Schedule of statements of Loss with respect to sale and costs of good sold | Year ended Year ended March 31, 2020, March 31, 2020 as originally reported Correction (Corrected) Sales $ 2,772,809 $ 380,843 $ 3,153,652 Cost of goods sold 2,136,456 380,843 2,517,299 Gross margin 636,353 — 636,353 Year ended Year ended March 31, 2019, March 31, 2019 as originally reported Correction (Corrected) Sales $ 3,038,438 $ 402,955 $ 3,441,393 Cost of goods sold 2,359,867 402,955 2,762,822 Gross margin 678,571 — 678,571 |
TRADE AND OTHER RECEIVABLES, _2
TRADE AND OTHER RECEIVABLES, NET (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
TRADE AND OTHER RECEIVABLES, NET | |
Schedule of the components of trade and other receivables | As at As at March 31, 2021 March 31, 2020 Trade account receivables, net $ 177,244 $ 241,969 Accrued gas receivable 833 7,224 Unbilled revenue, net 103,986 121,993 Other 46,132 32,721 $ 328,195 $ 403,907 |
Schedule of aging of the trade accounts receivable | As at March 31, 2021 As at March 31, 2020 Current $ 58,737 $ 83,431 1–30 days 19,415 26,678 31–60 days 3,794 6,513 61–90 days 2,144 5,505 Over 90 days 10,446 35,252 $ 94,536 $ 157,379 |
Schedule of changes in the allowance for doubtful accounts | As at As at March 31, 2021 March 31, 2020 Balance, beginning of year $ 45,832 $ 182,365 Provision for doubtful accounts 34,260 80,050 Bad debts written off (61,869) (138,514) Foreign exchange 5,140 3,124 Assets classified as held for sale/sold — (81,193) Balance, end of year $ 23,363 $ 45,832 |
OTHER CURRENT AND NON-CURRENT_2
OTHER CURRENT AND NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 March 31, 2020 Prepaid expenses and deposits $ 58,532 $ 55,972 Customer acquisition costs (a) 45,681 77,939 Green certificates 61,467 63,728 Gas delivered in excess of consumption 649 2,393 Inventory 3,391 3,238 $ 169,720 $ 203,270 As at As at (b) Other non-current assets March 31, 2021 March 31, 2020 Customer acquisition costs (a) $ 27,318 $ 43,686 Other long-term assets 7,944 12,764 $ 35,262 $ 56,450 (a) Amortization of $88.5 million is charged to selling commission expense in the Consolidated Statement of Loss. |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
PROPERTY AND EQUIPMENT | |
Schedule of property and equipment | As at March 31, 2021 As at March 31, 2020 Accumulated Net Book Accumulated Net Book Cost Dep Value Cost Dep Value Premise and ROU assets $ 31,167 $ (20,397) $ 10,770 $ 35,899 $ (19,729) $ 16,170 Computer equipment 25,646 (20,788) 4,858 27,959 (19,548) 8,411 Others 1 26,806 (24,607) 2,199 27,777 (23,564) 4,213 Total $ 83,619 $ (65,792) $ 17,827 $ 91,635 $ (62,841) $ 28,794 1 Others include, office equipment, furniture and fixture and lease hold improvements |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
INTANGIBLE ASSETS | |
Schedule of changes in intangible assets and goodwill | As at March 31, 2021 As at March 31, 2020 Accumulated Accumulated Cost Amortization Impairment NBV Cost Amortization NBV Technology 1 $ 122,763 $ (70,655) $ (1,116) $ 50,992 $ 121,382 $ (61,531) $ 59,851 Brand 2 32,459 (700) (13,864) 17,895 36,235 (400) 35,835 Others 3 55,610 (53,774) — 1,836 65,800 (63,220) 2,580 Total $ 210,832 $ (125,129) $ (14,980) $ 70,723 $ 223,417 $ (125,151) $ 98,266 1 Technology includes work in progress IT projects of $5.2 million which are not being amortized until completion. 2 This includes a net amount of $16.5 million with an indefinite life. 3 This includes sales networks and customer relationships. |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
FINANCIAL INSTRUMENTS | |
Schedule of unrealized gain (loss) of derivative instruments and other | As at As at As at March 31, 2021 March 31, 2020 March 31, 2019 Physical forward contracts and options (i) $ 8,795 $ (130,182) $ (116,350) Financial swap contracts and options (ii) 68,944 (62,612) 39,832 Foreign exchange forward contracts (7,826) 9,055 72 Share swap — (9,581) (3,507) 6.5% convertible bond conversion feature — — 247 Unrealized foreign exchange on 10.25% loan 17,077 — — Unrealized foreign exchange on the 6.5% convertible bond and 8.75% loan transferred to realized foreign exchange resulting from the September Recapitalization — (18,132) (8,061) Weather derivatives (iii) 2,242 (229) 7,796 Other derivative options 2,504 (1,736) (7,488) Unrealized gain (loss) of derivative instruments and other $ 91,736 $ (213,417) $ (87,459) |
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) $ 12,513 $ 6,713 $ 9,109 $ 56,122 Financial swap contracts and options (ii) 6,942 2,634 3,548 5,047 Foreign exchange forward contracts — — 272 — Weather derivatives (iii) 1,911 — — — Other derivative options 6,096 1,253 — — As at March 31, 2021 $ 27,462 $ 10,600 $ 12,929 $ 61,169 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 | Level 1 Level 2 Level 3 Total Derivative financial assets $ — $ 682 $ 37,380 $ 38,062 Derivative financial liabilities — — (74,098) (74,098) Total net derivative financial assets (liabilities) $ — $ 682 $ (36,718) $ (36,036) 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) | Year ended Year ended March 31, 2021 March 31, 2020 Balance, beginning of year $ (85,885) $ 17,310 Total gains 584 (3,822) Purchases (4,059) (43,663) Sales (1,670) 14,549 Settlements 54,312 (70,259) Balance, end of year $ (36,718) $ (85,885) |
TRADE AND OTHER PAYABLES (Table
TRADE AND OTHER PAYABLES (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
TRADE AND OTHER PAYABLES | |
Schedule of detailed information about trade and other payables | As at As at March 31, 2021 March 31, 2020 Commodity suppliers' accruals and payables (a) $ 712,144 $ 414,581 Green provisions and repurchase obligations 77,882 103,245 Sales tax payable 27,684 19,706 Non-commodity trade accruals and accounts payable (b) 68,567 117,473 Current portion of payable to former joint venture partner (c) 11,467 18,194 Accrued gas payable 544 3,295 Other payables 11,301 9,171 $ 909,589 $ 685,665 (a) Includes $468.6 million that is subject to compromise depending on the outcome of the CCAA proceedings (b) Includes $12.9 million that is subject to compromise depending on the outcome of the CCAA proceedings (c) The amount due to the former joint venture partner is subject to compromise depending on the outcome of the CCAA proceedings. |
DEFERRED REVENUE (Tables)
DEFERRED REVENUE (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
DEFERRED REVENUE. | |
Schedule of changes in contracrt assets and liabilities | As at As at March 31, 2021 March 31, 2020 Balance, beginning of year $ 852 $ 43,228 Additions to deferred revenue 10,963 7,499 Revenue recognized during the year (7,360) (10,726) Foreign exchange impact (2,968) 352 Liabilities classified as held for sale/sold (79) (39,501) Balance, end of year $ 1,408 $ 852 |
LONG-TERM DEBT AND FINANCING (T
LONG-TERM DEBT AND FINANCING (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
LONG-TERM DEBT AND FINANCING | |
Schedule of detailed information about borrowings | As at As at March 31, 2021 March 31, 2020 DIP Facility (a) $ 126,735 $ — Less: Debt issue costs (a) (6,312) — Filter Group financing (b) Credit facility - subject to compromise (c) 227,189 236,389 Less: Debt issue costs (c) — (1,644) 10.25% term loan - subject to compromise (d) 289,904 — 7.0% $13M subordinated notes - subject to compromise (e) 13,607 — 8.75% loan (f) — 280,535 6.75% $100M convertible debentures (g) — 90,187 6.75% $160M convertible debentures (h) — 153,995 6.5% convertible bonds (i) — 12,851 655,740 782,003 Less: Current portion (654,180) (253,485) $ 1,560 $ 528,518 |
Schedule of future annual minimum principal repayments | Future annual minimum principal repayments are as follows: Less than More than 1 year 1–3 years 4–5 years 5 years Total DIP Facility (a) $ $ — $ — $ — $ Less: Debt issue costs (a) (6,312) — — — (6,312) Filter Group financing (b) 3,057 1,560 — — 4,617 Credit facility - subject to compromise (c) 227,189 — — — 227,189 10.25% term loan - subject to compromise (d) 289,904 — — — 289,904 7.0% $13M subordinated notes - subject to compromise (e) 13,607 — — — 13,607 $ 654,180 $ 1,560 $ — $ — $ 655,740 |
Schedule of of finance cost | DIP Facility (a) $ $ — $ — Filter Group financing (b) 627 1,793 875 Credit facility (c) 20,544 23,736 20,715 10.25% Term Loan (d) 14,785 — — 7.0% $13M subordinated notes(e) 557 — — 8.75% loan (f) 18,055 35,089 8,999 6.75% $100M convertible debentures (g) 4,762 9,417 8,819 6.75% $160M convertible debentures (h) 6,948 13,850 13,598 6.5% convertible bonds (i) 539 2,746 18,387 Supplier finance and others (j) 18,313 20,314 16,386 $ 86,620 $ 106,945 $ 87,779 |
Schedule of Long-term debt | Cash Payment (Gain) As at As at April inflows Foreign in Kind Non-cash Loss on March 31, 1, 2020 (outflows) exchange ("PIK") changes Recapitalization DIP Facility (a) $ — $ 120,423 $ — $ — $ — $ — $ 120,423 Filter Group financing (b) 9,690 (5,073) — — — — 4,617 Credit facility (c) 234,745 (13,826) — — 6,270 — 227,189 10.25% loan (d) — — (17,077) 15,123 291,858 — 289,904 7.0% $13M subordinated — (2,000) — 428 15,179 — 13,607 8.75% loan (f) 280,535 — — — (281,632) 1,097 — 6.75% $100M convertible debentures (g) 90,187 — — — (74,544) (15,643) — 6.75% $160M convertible debentures (h) 153,995 — — — (101,955) (52,040) — 6.5% convertible bonds (i) 12,851 — — — (643) (12,208) — $ 782,003 $ 99,524 $ (17,077) $ 15,551 $ (145,467) $ (78,794) $ 655,740 Less: Current portion (253,485) — — — — — (654,180) $ 528,518 $ 1,560 Cash (Gain) As at As at April inflows Foreign Non-cash Loss on March 31, 1, 2019 (outflows) exchange PIK changes Recapitalization 2020 Filter Group financing (b) $ 17,577 $ (7,887) $ — $ — $ — $ — $ 9,690 Credit facility (c) 199,753 34,812 — — 180 — 234,745 8.75% loan (f) 240,094 17,163 17,613 — 5,665 — 280,535 6.75% $100M convertible debentures (g) 87,520 — — — 2,667 — 90,187 6.75% $160M convertible debentures (h) 150,945 — — — 3,050 — 153,995 6.5% convertible bonds (i) 29,483 (17,370) 518 — 220 — 12,851 $ 725,372 $ 26,718 $ 18,131 $ — $ 11,782 $ — $ 782,003 Less: Current portion (479,101) — — — — — (253,485) $ 246,271 $ 528,518 |
REPORTABLE BUSINESS SEGMENTS (T
REPORTABLE BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
REPORTABLE BUSINESS SEGMENTS | |
Disclosure of operating segments | Corporate and shared Mass Market Commercial services Consolidated Sales $ 1,530,617 $ 1,209,420 $ — $ 2,740,037 Cost of goods sold 2,915,079 1,597,087 — 4,512,166 Gross margin (1,384,462) (387,667) — (1,772,129) Depreciation and amortization 20,342 3,587 — 23,929 Administrative expenses 35,403 16,673 90,315 142,391 Selling and marketing expenses 107,932 71,589 — 179,521 Other operating expenses 29,898 10,854 — 40,752 Segment loss $ (1,578,037) $ (490,370) $ (90,315) $ (2,158,722) Finance costs — — — (86,620) Restructuring costs — — — (7,118) Gain on Recapitalization transaction, net — — — 51,360 Unrealized gain on derivative instruments and other — — — 91,736 Realized gain on derivative instruments — — — 1,877,339 Impairment of goodwill, intangible assets and other — — — (114,990) Other expense, net — — — (1,951) Reorganization costs — — — (41,623) Provision for income taxes — — — (2,308) Loss from continuing operations — — — (392,897) Profit from discontinued operations — — — 468 Loss for the year — — — $ (392,429) Capital expenditures $ 10,382 $ 1,173 $ — $ 11,555 As at March 31, 2021 Total goodwill $ 163,770 $ — $ — $ 163,770 Corporate and shared Mass Market Commercial services Consolidated Sales $ 1,757,245 $ 1,396,407 $ — $ 3,153,652 Cost of goods sold 1,285,122 1,232,177 2,517,299 Gross margin 472,123 164,230 — 636,353 Depreciation and amortization 38,224 3,424 — 41,648 Administrative expenses 37,780 20,262 109,894 167,936 Selling and marketing expenses 141,548 79,272 — 220,820 Other operating expenses 84,271 8,029 — 92,300 Segment profit (loss) $ 170,300 $ 53,243 $ (109,894) $ 113,649 Finance costs — — — (106,945) Unrealized loss on derivative instruments and other — — — (213,417) Realized loss of derivative instruments — — — (24,386) Other income, net — — — 32,660 Impairment of goodwill, intangible assets and other — — — (92,401) Provision for income taxes — — — 7,393 Loss from continuing operations — — — $ (298,233) Loss from discontinued operations — — — (11,426) Loss for the year — — — (309,659) As at March 31, 2020 Total goodwill $ 172,429 $ 100,263 $ — $ 272,692 Corporate and shared Mass Market Commercial services Consolidated Sales $ 2,010,054 $ 1,431,338 $ — $ 3,441,392 Cost of goods sold 1,523,090 1,239,731 2,762,821 Gross margin 486,964 191,607 — 678,571 Depreciation and amortization 24,906 2,289 — 27,195 Administrative expenses 42,573 32,377 90,378 165,328 Selling and marketing expenses 142,560 69,178 — 211,738 Restructuring costs 2,741 3,289 8,814 14,844 Other operating expenses 123,798 5,406 — 129,204 Segment profit (loss) $ 150,386 $ 79,068 $ (99,192) $ 130,262 Finance costs (87,779) Unrealized loss on derivative instruments and other (87,459) Realized loss on derivative instruments (83,776) Other income, net 2,312 Provision for income taxes 11,832 Loss from continuing operations $ (138,272) Loss from discontinued operations (128,259) Loss for the year (266,531) Capital expenditures $ 39,474 $ 4,068 $ — $ 43,542 As at March 31, 2019 Total goodwill $ 181,358 $ 158,563 $ — $ 339,921 |
Disclosure of geographical areas | As at As at As at March 31, 2021 March 31, 2020 March 31, 2019 Canada $ 303,666 $ 509,910 $ 613,944 U.S. 2,436,371 2,643,742 2,827,449 Total $ 2,740,037 $ 3,153,652 $ 3,441,393 As at March 31, 2021 As at March 31, 2020 Canada $ 178,802 $ 233,678 U.S. 73,518 166,074 Total $ 252,320 $ 399,752 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
INCOME TAXES | |
Schedule of income taxes | Current tax expense $ 2,697 $ 7,047 $ 7,622 Deferred tax expense (benefit) Origination and reversal of temporary differences $ (100,900) $ (90,459) $ (35,825) Expense arising from previously unrecognized tax loss or temporary difference 100,511 90,805 40,035 Deferred tax expense (389) 346 4,210 Provision for income taxes $ 2,308 $ 7,393 $ 11,832 |
Disclosure of income tax reconciliation | Loss before income taxes $ (390,589) $ (290,840) $ (126,440) Combined statutory Canadian federal and provincial income tax rate 26.50 % 26.50 % 26.50 % Income tax recovery based on statutory rate $ (103,506) $ (77,073) $ (33,507) Increase (decrease) in income taxes resulting from: Expense of mark to market loss and other temporary differences not recognized $ 100,511 $ 90,805 $ 40,035 Variance between combined Canadian tax rate and the tax rate applicable to foreign earnings (5,589) (5,554) (3,841) Other permanent items 10,892 (785) 9,145 Total provision for income taxes $ 2,308 $ 7,393 $ 11,832 |
Disclosure of deferred taxes | ar Tax losses and excess of tax basis over book basis 71,607 23,191 Total deferred income tax assets 71,607 23,191 Offset of deferred income taxes (70,612) (22,550) Net deferred income tax assets $ 995 $ 641 Book to tax differences on other assets (70,612) (18,367) Convertible debentures — (4,183) Total deferred income tax liabilities (70,612) (22,550) Offset of deferred income taxes 70,612 22,550 Net deferred income tax liabilities $ — $ — |
Disclosure of income tax, deferred tax movements | As at Recognized in Recognized As at April 1, 2020 profit or loss in OCI Other March 31, 2021 Book to tax differences 4,824 (3,794) — (35) 995 Convertible debentures (4,183) 4,183 — — — $ 641 $ 389 $ — $ (35) $ 995 ar As at Recognized in Recognized As at April 1, 2019 profit or loss in OCI Other March 31, 2020 Partnership income deferred for tax $ (3,542) $ 3,542 $ — $ — $ — Book to tax differences 27,316 (23,364) 872 — 4,824 Mark to market (gains) losses on derivative instruments (17,586) 17,586 — — — Convertible debentures (6,073) 1,890 — — (4,183) $ 115 $ (346) $ 872 $ — $ 641 |
Disclosure of temporary difference, unused tax losses and unused tax credits | Mark to market losses on derivative instruments $ 10,886 $ 31,897 Excess of tax over book basis 74,699 47,038 |
SHAREHOLDERS' CAPITAL (Tables)
SHAREHOLDERS' CAPITAL (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
SHAREHOLDERS' CAPITAL | |
Schedule of issued and outstanding shareholders' capital | As at As at March 31, 2021 March 31, 2020 Shares Amount Shares Amount Common shares: Issued and outstanding Balance, beginning of year 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 year 48,078,637 $ 1,537,863 4,594,371 $ 1,099,864 Preferred shares: Balance, beginning of year 4,662,165 $ 146,965 4,662,165 $ 146,965 Exchanged to common shares (4,662,165) (146,965) — — Balance, end of year — $ — 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) | 12 Months Ended |
Mar. 31, 2021 | |
OTHER EXPENSES | |
Schedule of other operating expenses | Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2019 Amortization of intangible assets $ 16,166 $ 27,997 $ 22,680 Depreciation of property and equipment 7,763 13,651 4,515 Bad debt expense 34,260 80,050 123,288 Share-based compensation 6,492 12,250 5,916 $ 64,681 $ 133,948 $ 156,399 |
Schedule of employee expenses | Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2019 Wages, salaries and commissions $ 160,127 $ 211,457 $ 233,575 Benefits 14,755 22,218 22,315 $ 174,882 $ 233,675 $ 255,890 |
PROVISIONS (Tables)
PROVISIONS (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
PROVISIONS | |
Schedule of provisions | Year ended Year ended March 31, 2021 March 31, 2020 Balance, beginning of the period $ 1,529 $ 6,616 Provisions recorded this year 3,870 6,206 Provisions utilized this year (1,388) (1,563) Foreign exchange impact 2,775 (9,730) Balance, end of the period $ 6,786 $ 1,529 |
PROFIT (LOSS) PER SHARE (Tables
PROFIT (LOSS) PER SHARE (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
PROFIT (LOSS) PER SHARE | |
Schedule of profit (loss) per share | Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2019 BASIC EARNINGS (LOSS) PER SHARE Profit (loss) from continuing operations available to shareholders $ (392,897) $ (298,233) $ (138,272) Earnings (loss) from continuing operations available to (392,429) (309,659) (138,272) Basic weighted average shares outstanding 34,125,199 9,856,639 9,732,966 Basic earnings (loss) per share from continuing operations $ (11.51) $ (30.26) $ (14.21) Basic earnings (loss) per share available to shareholders $ (11.50) $ (31.42) $ (27.39) DILUTED EARNINGS (LOSS) PER SHARE Profit (loss) from continuing operations available to $ (392,897) $ (298,233) $ (138,272) Adjusted earnings (loss) from continuing operations available to $ (392,429) $ (298,233) $ (138,272) Basic weighted average shares outstanding 34,125,199 9,856,639 9,732,966 Dilutive effect of: Restricted share and performance bonus grants 33,430 80,761 73,030 Deferred share grants 6,437 8,841 4,331 Restricted share units 4,252 — — Deferred share units 87,926 — — Options 305,357 — — Shares outstanding on a diluted basis 34,562,601 1 9,946,241 1 9,810,327 1 Diluted earnings (loss) from continuing operations per share $ (11.51) $ (30.26) $ (14.21) Diluted earnings (loss) per share available to shareholders $ (11.50) $ (31.42) $ (27.39) 1 The assumed settlement of shares results in an anti-dilutive position; therefore, these items have not been included in the computation of dilutes earnings (loss) per share. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
DISCONTINUED OPERATIONS | |
Schedule of assets and liabilities associated with assets classified as held for sale | As at As at March 31, 2021 March 31, 2020 ASSETS Current assets Cash and cash equivalents $ — $ 898 Current trade and other receivables, net — 4,978 Income taxes recoverable — 12 Other current assets — 1,140 — 7,028 Non-current assets Property and equipment — 38 Intangible assets — 545 ASSETS CLASSIFIED AS HELD FOR SALE $ — $ 7,611 Liabilities Current liabilities Trade and other payables $ — $ 4,823 Deferred revenue — 83 LIABILITIES ASSOCIATED WITH ASSETS CLASSIFIED AS HELD FOR SALE $ — $ 4,906 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of Commitments | As at March 31, 2021 Less than 1 year 1–3 years 4–5 years More than 5 years Total Gas, electricity and non- $ 1,339,637 $ 960,907 $ 183,269 $ 48,057 $ 2,531,870 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |
Schedule of related party transactions | March 31, 2021 March 31, 2020 Salaries and benefits $ 3,953 $ 2,334 Share-based compensation expense, net 200 625 $ 4,153 $ 2,959 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
SUPPLEMENTAL CASH FLOW INFORMATION | |
Schedule of changes in non-cash working capital | As at As at As at March 31, 2021 March 31, 2020 March 31, 2019 Accounts receivable and unbilled revenue, net $ 60,602 $ 33,839 $ (35,427) Gas in storage 3,185 (3,234) (601) Prepaid expenses and deposits 50,270 (89,087) (128,911) Provisions 6,145 (4,607) 4,309 Trade and other payables (188,393) 106,271 174,958 Restricted cash 2,782 — — Adjustments required to reflect net cash receipts from gas sales (265) 812 4,186 $ (65,674) $ 43,994 $ 18,514 |
ORGANIZATION (Details)
ORGANIZATION (Details) | Feb. 19, 2021$ / hUSD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020 |
Increased electricity demand real time market price | $ / h | 9,000 | ||
Number of consecutive hours | 88 | ||
10.25 % term loan | |||
Debtor-In-Possession financing | $ 125,000,000 | ||
Interest rate | 10.25% | 10.25% |
ORGANIZATION - Summary of oblig
ORGANIZATION - Summary of obligations that are subject to potential compromise (Details) - CAD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Current portion of long term debt | $ 654,180 | $ 253,485 |
CCAA proceedings | ||
Trade and other payables. | 505,736 | |
Current portion of long term debt | 530,700 | |
Liabilities, Total | $ 1,036,436 |
OPERATIONS (Details)
OPERATIONS (Details) | 12 Months Ended |
Mar. 31, 2021 | |
Fixed-price or price protected | |
Operations: | |
Term in contract with customer | P5Y |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Property and equipment (Details) | 12 Months Ended |
Mar. 31, 2021 | |
Fixtures and fittings | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciations method | Declining balance |
Depreciation rate | 20.00% |
Office equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciations method | Declining balance |
Depreciation rate | 20.00% |
Computer equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciations method | Declining balance |
Depreciation rate | 30.00% |
Leasehold improvements | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciations method | Straight-line |
Premise assets | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciations method | Straight-line |
Premise assets | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life (Year) | 7 years |
Premise assets | Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life (Year) | 4 years |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Intangible Assets (Details) | 12 Months Ended |
Mar. 31, 2021 | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization method | Straight-line |
Customer-related intangible assets | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life and amortization rate (Year) | 10 years |
Technology | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization method | Straight-line |
Technology | Top of range | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life and amortization rate (Year) | 5 years |
Technology | Bottom of range | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life and amortization rate (Year) | 3 years |
Brand | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life and amortization rate (Year) | 10 years |
Amortization method | Straight-line |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Leases (Details) | 12 Months Ended |
Mar. 31, 2021 | |
Top of range | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives of the lease assets | 6 years |
Bottom of range | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives of the lease assets | 2 years |
CORRECTION OF PRIOR PERIOD FI_3
CORRECTION OF PRIOR PERIOD FINANCIAL STATEMENTS (Details) - CAD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Line Items [Line Items] | ||||||
Sales | $ 2,740,037 | $ 3,153,652 | $ 3,441,393 | $ 2,740,037 | $ 3,153,652 | |
Cost of goods sold | 4,512,166 | 2,517,299 | ||||
Gross margin | $ (1,772,129) | 636,353 | $ 678,571 | |||
Originally Reported Member | ||||||
Statement Line Items [Line Items] | ||||||
Sales | 2,772,809 | 3,038,438 | ||||
Cost of goods sold | 2,136,456 | 2,359,867 | ||||
Gross margin | 636,353 | 678,571 | ||||
Correction Member | ||||||
Statement Line Items [Line Items] | ||||||
Sales | 380,843 | 402,955 | ||||
Cost of goods sold | $ 380,843 | $ 402,955 |
TRADE AND OTHER RECEIVABLES, _3
TRADE AND OTHER RECEIVABLES, NET (Details) - CAD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
TRADE AND OTHER RECEIVABLES, NET | ||
Trade accounts receivable, net | $ 177,244 | $ 241,969 |
Accrued gas receivables | 833 | 7,224 |
Unbilled revenues, net | 103,986 | 121,993 |
Other | 46,132 | 32,721 |
Trade and other receivables, net | $ 328,195 | $ 403,907 |
TRADE AND OTHER RECEIVABLES, _4
TRADE AND OTHER RECEIVABLES, NET - Aging (Details) - CAD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Aging of trade receivable: | ||
Trade and other receivables, net | $ 328,195 | $ 403,907 |
Credit risk | ||
Aging of trade receivable: | ||
Trade and other receivables, net | 94,536 | 157,379 |
Credit risk | Current | ||
Aging of trade receivable: | ||
Trade and other receivables, net | 58,737 | 83,431 |
Credit risk | 1-30 days | ||
Aging of trade receivable: | ||
Trade and other receivables, net | 19,415 | 26,678 |
Credit risk | 31-60 days | ||
Aging of trade receivable: | ||
Trade and other receivables, net | 3,794 | 6,513 |
Credit risk | 61-90 days | ||
Aging of trade receivable: | ||
Trade and other receivables, net | 2,144 | 5,505 |
Credit risk | Over 90 days | ||
Aging of trade receivable: | ||
Trade and other receivables, net | $ 10,446 | $ 35,252 |
TRADE AND OTHER RECEIVABLES, _5
TRADE AND OTHER RECEIVABLES, NET - Allowance (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
TRADE AND OTHER RECEIVABLES, NET | ||
Balance, beginning of period | $ 45,832 | $ 182,365 |
Provision for doubtful accounts | 34,260 | 80,050 |
Bad debts written off | (61,869) | (138,514) |
Foreign exchange | 5,140 | 3,124 |
Assets classified as held for sale | (81,193) | |
Balance, end of period | $ 23,363 | $ 45,832 |
OTHER CURRENT AND NON-CURRENT_3
OTHER CURRENT AND NON-CURRENT ASSETS - Current (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
OTHER CURRENT AND NON-CURRENT ASSETS | |||
Prepaid expenses and deposits | $ 58,532 | $ 55,972 | |
Customer acquisition costs | [1] | 45,681 | 77,939 |
Green certificates | 61,467 | 63,728 | |
Gas delivered in excess of consumption | 649 | 2,393 | |
Inventory | 3,391 | 3,238 | |
Other current assets | 169,720 | $ 203,270 | |
Amortization of customer acquisition costs | $ 88,500 | ||
[1] | Amortization of $88.5 million is charged to selling commission expense in the Consolidated Statement of Loss. |
OTHER CURRENT AND NON-CURRENT_4
OTHER CURRENT AND NON-CURRENT ASSETS - Noncurrent (Details) - CAD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 | |
OTHER CURRENT AND NON-CURRENT ASSETS | |||
Customer acquisition costs | [1] | $ 27,318 | $ 43,686 |
Other long-term assets | 7,944 | 12,764 | |
Other non-current assets | $ 35,262 | $ 56,450 | |
[1] | Amortization of $88.5 million is charged to selling commission expense in the Consolidated Statement of Loss. |
INVESTMENTS (Details)
INVESTMENTS (Details) - Ecobee - CAD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disclosure of associates [line items] | ||
Proportion of ownership interest in associate | 8.00% | |
Gains (losses) on available-for-sale financial assets | $ 32.9 | $ 32.9 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - CAD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | $ 17,827 | $ 28,794 | |
Premise and ROU assets | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 10,770 | 16,170 | |
Computer equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 4,858 | 8,411 | |
Others | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | [1] | 2,199 | 4,213 |
Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 83,619 | 91,635 | |
Cost | Premise and ROU assets | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 31,167 | 35,899 | |
Cost | Computer equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | 25,646 | 27,959 | |
Cost | Others | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | [1] | 26,806 | 27,777 |
Accumulated Depreciation/Amortization | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | (65,792) | (62,841) | |
Accumulated Depreciation/Amortization | Premise and ROU assets | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | (20,397) | (19,729) | |
Accumulated Depreciation/Amortization | Computer equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | (20,788) | (19,548) | |
Accumulated Depreciation/Amortization | Others | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment | [1] | $ (24,607) | $ (23,564) |
[1] | Others include, office equipment, furniture and fixture and lease hold improvements |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disclosure of detailed information about intangible assets [line items] | ||
Total intangible assets and goodwill | $ 70,723 | $ 98,266 |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | $ 1,100 | |
Goodwill | ||
Disclosure of detailed information about intangible assets [line items] | ||
Discount rate used in current estimate of value in use | 12.50% | |
Commercial | ||
Disclosure of detailed information about intangible assets [line items] | ||
Impairment loss recognised in profit or loss, goodwill | $ 100,000 | 92,000 |
Impairment loss | $ 14,000 | |
Filter Group Inc | ||
Disclosure of detailed information about intangible assets [line items] | ||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 8,500 | |
Just Energy Advanced Solutions | ||
Disclosure of detailed information about intangible assets [line items] | ||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | 3,900 | |
EdgePower Inc. | ||
Disclosure of detailed information about intangible assets [line items] | ||
Impairment loss recognised in profit or loss, intangible assets other than goodwill | $ 14,700 |
INTANGIBLE ASSETS - Reconciliat
INTANGIBLE ASSETS - Reconciliation of Changes in Intangible Assets (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | $ 70,723 | $ 98,266 | |
Impairment | (14,980) | ||
Technology | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | [1] | 50,992 | 59,851 |
Impairment | [1] | (1,116) | |
IT projects | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | 5,200 | ||
Brand | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | [2] | 17,895 | 35,835 |
Impairment | [2] | (13,864) | |
Intangible assets including indefinite life | 16,500 | ||
Others | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | [3] | 1,836 | 2,580 |
Cost | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | 210,832 | 223,417 | |
Cost | Technology | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | [1] | 122,763 | 121,382 |
Cost | Brand | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | [2] | 32,459 | 36,235 |
Cost | Others | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | [3] | 55,610 | 65,800 |
Accumulated Depreciation/Amortization | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | (125,129) | (125,151) | |
Accumulated Depreciation/Amortization | Technology | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | [1] | (70,655) | (61,531) |
Accumulated Depreciation/Amortization | Brand | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | [2] | (700) | (400) |
Accumulated Depreciation/Amortization | Others | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets | [3] | $ (53,774) | $ (63,220) |
[1] | Technology includes work in progress IT projects of $5.2 million which are not being amortized until completion. | ||
[2] | This includes a net amount of $16.5 million with an indefinite life. | ||
[3] | This includes sales networks and customer relationships. |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Classified as fair value | |||
Financial Instruments: | |||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | $ (87,459) | ||
Classified as fair value | Forward contract | |||
Financial Instruments: | |||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | (116,350) | ||
Classified as fair value | Swap contract | |||
Financial Instruments: | |||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | 39,832 | ||
Classified as fair value | Foreign exchange forward contracts | |||
Financial Instruments: | |||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | 72 | ||
Classified as fair value | Share swap | |||
Financial Instruments: | |||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | (3,507) | ||
Classified as fair value | 6.5% convertible bond conversion feature | |||
Financial Instruments: | |||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | 247 | ||
Classified as fair value | Unrealized foreign exchange on the 6.5% convertible bond and 8.75% loan transferred to realized foreign exchange resulting from the September Recapitalization | |||
Financial Instruments: | |||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | (8,061) | ||
Classified as fair value | Weather derivatives | |||
Financial Instruments: | |||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | 7,796 | ||
Classified as fair value | Other derivative options | |||
Financial Instruments: | |||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | $ (7,488) | ||
Classified as fair value through profit or loss | |||
Financial Instruments: | |||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | $ 91,736 | $ (213,417) | |
Classified as fair value through profit or loss | Forward contract | |||
Financial Instruments: | |||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | 8,795 | (130,182) | |
Classified as fair value through profit or loss | Swap contract | |||
Financial Instruments: | |||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | 68,944 | (62,612) | |
Classified as fair value through profit or loss | Foreign exchange forward contracts | |||
Financial Instruments: | |||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | (7,826) | 9,055 | |
Classified as fair value through profit or loss | Share swap | |||
Financial Instruments: | |||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | (9,581) | ||
Classified as fair value through profit or loss | Unrealized foreign exchange | |||
Financial Instruments: | |||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | (18,132) | ||
Classified as fair value through profit or loss | Unrealized foreign exchange on 10.25% loan | |||
Financial Instruments: | |||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | 17,077 | ||
Classified as fair value through profit or loss | Weather derivatives | |||
Financial Instruments: | |||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | 2,242 | (229) | |
Classified as fair value through profit or loss | Other derivative options | |||
Financial Instruments: | |||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | $ 2,504 | $ (1,736) |
FINANCIAL INSTRUMENTS - Derivat
FINANCIAL INSTRUMENTS - Derivatives (Details) - CAD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Financial Instruments: | ||
Financial assets, current | $ 27,462 | $ 36,353 |
Financial assets, non-current | 10,600 | 28,792 |
Financial liabilities, current | 12,929 | 113,438 |
Fair value liabilities, non-current | 61,169 | 76,268 |
Classified as fair value | ||
Financial Instruments: | ||
Financial assets, current | 6,096 | 36,353 |
Financial assets, non-current | 1,253 | 28,792 |
Financial liabilities, current | 113,438 | |
Fair value liabilities, non-current | 76,268 | |
Classified as fair value | Forward contract | ||
Financial Instruments: | ||
Financial assets, current | 12,513 | 24,549 |
Financial assets, non-current | 6,713 | 17,673 |
Financial liabilities, current | 9,109 | 57,461 |
Fair value liabilities, non-current | 56,122 | 51,836 |
Classified as fair value | Swap contract | ||
Financial Instruments: | ||
Financial assets, current | 6,942 | 6,915 |
Financial assets, non-current | 2,634 | 1,492 |
Financial liabilities, current | 3,548 | 53,917 |
Fair value liabilities, non-current | 5,047 | 24,432 |
Classified as fair value | Foreign exchange forward contracts | ||
Financial Instruments: | ||
Financial assets, current | 4,519 | |
Financial assets, non-current | 3,036 | |
Financial liabilities, current | 272 | |
Classified as fair value | Weather derivatives | ||
Financial Instruments: | ||
Financial assets, current | 1,911 | |
Financial liabilities, current | 280 | |
Classified as fair value | Other derivative options | ||
Financial Instruments: | ||
Financial assets, current | 27,462 | 370 |
Financial assets, non-current | 10,600 | 6,591 |
Financial liabilities, current | 12,929 | $ 1,780 |
Fair value liabilities, non-current | $ 61,169 |
FINANCIAL INSTRUMENTS - Hedges
FINANCIAL INSTRUMENTS - Hedges (Details) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018CAD ($)shares | Mar. 31, 2021itemMWhUSD ($)$ / h | 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 | 26,364,660 | ||
Price of hedging instrument | 45.50 | ||
Forward contract | Natural gas | 4-5 years | |||
Hedging: | |||
Nominal amount of hedging instrument | item | 85,702,596 | ||
Price of hedging instrument | 2.89 | ||
Forward contract | Renewable energy certificates | 7 - 10 years | |||
Hedging: | |||
Nominal amount of hedging instrument | $ | 2,469,441 | ||
Price of hedging instrument | 38.02 | ||
Forward contract | Capacity contracts | 3-4 years | |||
Hedging: | |||
Nominal amount of hedging instrument | 2,855 | ||
Price of hedging instrument | 4,737.46 | ||
Forward contract | Ancillary contract | Later than one year | |||
Hedging: | |||
Nominal amount of hedging instrument | $ | 681,070 | ||
Price of hedging instrument | 16.13 | ||
Swap contract | 4-5 years | |||
Hedging: | |||
Nominal amount of hedging instrument | 15,526,415 | ||
Price of hedging instrument | 42.91 | ||
Swap contract | Natural gas | 4-5 years | |||
Hedging: | |||
Nominal amount of hedging instrument | 96,373,985 | ||
Price of hedging instrument | 3.11 | ||
Weather derivatives | Heating degree days | Strike | Later than one year | Bottom of range | |||
Hedging: | |||
Nominal amount of hedging instrument | item | 1,813 | ||
Weather derivatives | Heating degree days | Strike | Later than one year | Top of range | |||
Hedging: | |||
Nominal amount of hedging instrument | item | 4,985 | ||
Weather derivatives | Heating degree days | Strike | 3-4 years | Bottom of range | |||
Hedging: | |||
Nominal amount of hedging instrument | item | 3,439 | ||
Weather derivatives | Heating degree days | Strike | 3-4 years | Top of range | |||
Hedging: | |||
Nominal amount of hedging instrument | item | 4,985 |
FINANCIAL INSTRUMENTS - Classif
FINANCIAL INSTRUMENTS - Classification in FV hierarchy (Details) - CAD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Classification of derivative financial assets (liabilities): | ||
Derivative financial assets | $ 38,062 | $ 65,145 |
Derivative financial liabilities | (74,098) | (189,706) |
Total net derivative financial assets (liabilities) | (36,036) | (124,561) |
Level 2 of fair value hierarchy | ||
Classification of derivative financial assets (liabilities): | ||
Derivative financial assets | 682 | |
Derivative financial liabilities | (38,676) | |
Total net derivative financial assets (liabilities) | 682 | (38,676) |
Level 3 of fair value hierarchy | ||
Classification of derivative financial assets (liabilities): | ||
Derivative financial assets | 37,380 | 65,145 |
Derivative financial liabilities | (74,098) | (151,030) |
Total net derivative financial assets (liabilities) | $ (36,718) | $ (85,885) |
FINANCIAL INSTRUMENTS - Sensiti
FINANCIAL INSTRUMENTS - Sensitivity (Details) - CAD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | |
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% | |
Increase in risk variable, impact on other comprehensive loss | $ 6.5 | ||
Decrease in risk variable, impact on other comprehensive loss | $ 26.3 | ||
Level 1 of fair value hierarchy | |||
Disclosure of sensitivity: | |||
Interest rate | 10.25% | 10.25% | |
Level 1 of fair value hierarchy | 6.75% $100M convertible debentures | |||
Disclosure of sensitivity: | |||
Interest rate | 8.75% | 8.75% | |
Level 1 of fair value hierarchy | 6.75% $160M convertible debentures | |||
Disclosure of sensitivity: | |||
Financial liabilities, fair value | $ 160 | $ 160 | |
Interest rate | 6.50% | 6.50% | |
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 | $ 138.8 | ||
Increase (decrease), due to decrease, liabilities, impact on profit or loss before tax | $ 136.2 | ||
Commodity price risk | Level 3 of fair value hierarchy | |||
Disclosure of sensitivity: | |||
Percentage of increase, liabilities | 10.00% | 10.00% | 10.00% |
Increase (decrease) due to increase, liabilities, impact on profit or loss before tax | $ 139.2 | ||
Increase (decrease), due to decrease, liabilities, impact on profit or loss before tax | $ 136.6 | ||
Currency risk | |||
Disclosure of sensitivity: | |||
Percentage of increase, liabilities | 5.00% | 5.00% | |
Interest rate risk | |||
Disclosure of sensitivity: | |||
Increase (decrease) due to increase, liabilities, impact on profit or loss before tax | $ 3.6 | $ 2.4 | |
Percentage of decrease, liabiities | 1.00% | 1.00% | |
Supplier risk | |||
Disclosure of sensitivity: | |||
Financial assets, at fair value | $ 1.1 | $ 1.1 | 23.8 |
Credit risk | |||
Disclosure of sensitivity: | |||
Counter party credit risk | $ 38.1 | $ 38.1 | $ 65.1 |
FINANCIAL INSTRUMENTS - Reconci
FINANCIAL INSTRUMENTS - Reconciliation of Level 3 Assets (Liabilities) (Details) - Level 3 of fair value hierarchy - CAD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Financial Instruments: | ||
Balance, beginning of period | $ (85,885) | $ 17,310 |
Total gains (losses) | 584 | (3,822) |
Purchases | (4,059) | (43,663) |
Sales | (1,670) | 14,549 |
Settlements | 54,312 | (70,259) |
Balance, end of period | $ (36,718) | $ (85,885) |
TRADE AND OTHER PAYABLES - Sche
TRADE AND OTHER PAYABLES - Schedule of Payables (Details) - CAD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
TRADE AND OTHER PAYABLES | ||
Commodity suppliers' accruals and payables (a) | $ 712,144 | $ 414,581 |
Green provisions and repurchase obligations | 77,882 | 103,245 |
Sales tax payable | 27,684 | 19,706 |
Non-commodity trade accruals and accounts payable (b) | 68,567 | 117,473 |
Current portion of payable to former joint venture partner (c) | 11,467 | 18,194 |
Accrued gas payable | 544 | 3,295 |
Other payables | 11,301 | 9,171 |
Trade and other current payables | $ 909,589 | $ 685,665 |
TRADE AND OTHER PAYABLES - Addi
TRADE AND OTHER PAYABLES - Additional information (Details) - CAD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Disclosure of detailed information about borrowings [line items] | ||
Commodity suppliers' accruals and payables (a) | $ 712,144 | $ 414,581 |
Non-commodity trade accruals and accounts payable (b) | 68,567 | $ 117,473 |
Companies' Creditors Arrangement Act [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Commodity suppliers' accruals and payables (a) | 468,600 | |
Non-commodity trade accruals and accounts payable (b) | $ 12,900 |
DEFERRED REVENUE - (Details)
DEFERRED REVENUE - (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
DEFERRED REVENUE. | ||
Balance, beginning of year | $ 852 | $ 43,228 |
Additions to deferred revenue | 10,963 | 7,499 |
Revenue recognized during the year | (7,360) | (10,726) |
Foreign exchange impact | (2,968) | 352 |
Liabilities classified as held for sale/sold | (79) | (39,501) |
Balance, end of year | $ 1,408 | $ 852 |
LONG-TERM DEBT AND FINANCING (D
LONG-TERM DEBT AND FINANCING (Details) $ in Thousands, $ in Millions | 12 Months Ended | ||||||||||
Mar. 31, 2021CAD ($) | Mar. 31, 2020CAD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2021CAD ($) | Mar. 18, 2021CAD ($) | Mar. 09, 2021CAD ($) | Dec. 31, 2020 | Sep. 28, 2020CAD ($) | ||||
Borrowings: | |||||||||||
Debt | $ 782,003 | $ 655,740 | |||||||||
Less: Current portion | (253,485) | (654,180) | |||||||||
Total non-current portion of non-current borrowings | 528,518 | 1,560 | |||||||||
DIP Facility | |||||||||||
Borrowings: | |||||||||||
Debt | [1] | 126,735 | |||||||||
Less: Debt issue costs (a) | [1] | $ (6,312) | |||||||||
Filter Group financing | |||||||||||
Borrowings: | |||||||||||
Debt | [2] | 9,690 | 4,617 | ||||||||
Credit facility | |||||||||||
Borrowings: | |||||||||||
Debt | 236,389 | [3] | 227,189 | [3] | $ 335,000 | $ 335,000 | |||||
Less: Debt issue costs (a) | [3] | $ (1,644) | |||||||||
10.25 % term loan | |||||||||||
Borrowings: | |||||||||||
Debt | $ 205.9 | $ 289,904 | [4] | ||||||||
Interest rate | 10.25% | 10.25% | 10.25% | ||||||||
7.0% $13M subordinated notes | |||||||||||
Borrowings: | |||||||||||
Debt | $ 13,607 | [5] | $ 15,000 | ||||||||
Notional amount | $ 13,000 | $ 13,000 | |||||||||
Interest rate | 7.00% | 7.00% | 7.00% | ||||||||
Unsecured term loan | |||||||||||
Borrowings: | |||||||||||
Debt | $ 280,535 | [6] | $ 207 | ||||||||
Interest rate | 8.75% | 8.75% | 8.75% | 8.75% | |||||||
6.75% $100M convertible debentures | |||||||||||
Borrowings: | |||||||||||
Debt | $ 90,187 | [7] | 100,000 | ||||||||
Notional amount | $ 100,000 | $ 100,000 | |||||||||
Interest rate | 6.75% | 6.75% | 6.75% | ||||||||
6.75% $160M convertible debentures | |||||||||||
Borrowings: | |||||||||||
Debt | $ 153,995 | [8] | $ 160,000 | ||||||||
Notional amount | $ 160,000 | $ 160,000 | |||||||||
Interest rate | 6.75% | 6.75% | 6.75% | ||||||||
6.5% convertible bonds | |||||||||||
Borrowings: | |||||||||||
Debt | $ 12,851 | [9] | $ 9,200 | ||||||||
Interest rate | 6.50% | 6.50% | 6.50% | ||||||||
[1] | As discussed in Note 1, the Company filed and received the Court Order under the CCAA on March 9, 2021. In conjunction with the CCAA filing, the Company entered into the DIP Facility for US$125 million. Just Energy Ontario L.P., Just Energy Group Inc. and Just Energy (U.S.) Corp. are the borrowers under the DIP Facility and are supported by guarantees of certain subsidiaries and affiliates and secured by a super-priority charge against and attaching to the property that secures the obligations arising under the $335 million Credit Facility, created by the Court Order. The DIP Facility has an interest rate of 13%, paid quarterly in arrears. The DIP Facility terminates at the earlier of: (a) December 31, 2021, (b) the implementation date of the CCAA plan, (c) the lifting of the stay in the CCAA proceedings or (d) the termination of the CCAA proceedings. On March 9, 2021, the Company borrowed US$100 million and borrowed the remaining US$25 million on April 6, 2021. For consideration for making the DIP Facility available, the Company paid a 1% origination fee and a 1% commitment fee. | ||||||||||
[2] | 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 payable monthly. Filter Group did not file under the CCAA and accordingly, the stay does not apply to Filter Group and any amounts outstanding under the loan payable to Home Trust Company. | ||||||||||
[3] | On March 18, 2021, Just Energy Ontario L.P, Just Energy (U.S.) Corp. and Just Energy Group Inc. entered into an Accommodation and Support Agreement (the “Lender Support Agreement”) with the lenders under the $335 million Credit Facility. Under the Lender Support Agreement, the lenders agreed to allow issuance or renewals of Letters of Credit under the $335 million Credit Facility during the pendency of the CCAA proceedings within certain restrictions. In return, the Company has agreed to continue paying interest and fees at the non-default rate on the outstanding advances and Letters of Credit under the $335 million Credit Facility. The amount of Letters of Credit that may be issued is limited to the greater of $46.1 million (excluding the Letters of Credit guaranteed by Export Development Canada under its Account Performance Security Guarantee Program), plus any amount the Company has repaid; and $125 million.As part of the September Recapitalization, Just Energy extended the $335 million 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 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 the Filter Group. 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 a result of the CCAA filing, the borrowers are in default under the Credit Facility. However, any potential actions by the lenders have been stayed pursuant to the Court Order. In addition, pursuant to the Lender Support Agreement, the lenders have agreed to continue to provide access to the issuance of Letters of Credit. As at March 31, 2021, the Company had Letter of Credit capacity of $4.5 million available.The outstanding Advances are all Prime rate advances 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%. As at March 31, 2021, the Canadian prime rate was 2.45% and the U.S. prime rate was 3.25%. As at March 31, 2021, $227.2 million has been drawn against the facility, $41.7 of letters of credit outstanding has been issued under the Canadian and U.S. facilities and $57.7 of Letters of Credit are outstanding under the LC Facility. As a result of the CCAA filing, the Credit Facility has been reclassified to short-term reflecting the potential acceleration of the debt allowed under the Credit Facility. Additionally, all deferred debt issue costs have been accelerated in the period ended March 31, 2021 to reflect the current classification and presented in Reorganization costs in the Consolidated Statements of Loss. | ||||||||||
[4] | As part of the September 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%. The balance at March 31, 2021 includes an accrual of $13.9 million for interest payable on the notes. As a result of the CCAA filing, the Company is in default under the 10.25% Term Loan, as described below. However, any potential actions by the lenders under the 10.25% Term Loan have been stayed pursuant to the Court Order, and the Company is not issuing additional notes equal to the capitalized interest. As a result, the prepayment fee has been accelerated and accrued and is presented in the Reorganization cost on the Consolidated Statement of Loss. | ||||||||||
[5] | As part of the September Recapitalization, Just Energy issued $15 million principal amount of 7.0% subordinated notes (“7.0% 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. The balance at March 31, 2021 includes an accrual of $0.4 million for capitalized interest payable on the notes. The 7.0% 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. As a result of the CCAA filing, the Company is in default under the 7.0% Subordinated Notes’ Trust Indenture agreement. However, any potential actions by the lenders under the 7.0% Subordinated Notes have been stayed pursuant to the Court Order and the Company is not issuing additional notes equal to the capitalized interest. Given this acceleration option, the 7.0% Subordinated Notes have been classified as current. Additionally, all deferred debt issue costs have been accelerated to the period ended March 31, 2021 to reflect the current classification and presented in Reorganization costs in the Consolidated Statements of Loss. | ||||||||||
[6] | As part of the September Recapitalization, the 8.75% loan was exchanged for its pro-rata share of the 10.25% term loan and 786,982 common shares. The 8.75% loan had US$207.0 million outstanding plus accrued interest. | ||||||||||
[7] | As part of the September Recapitalization, the 6.5% $100M convertible debentures were exchanged for 3,592,069 common shares along with its pro-rata share of the 7.0% Subordinated Notes and the payment of accrued interest. | ||||||||||
[8] | As part of the September 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% Subordinated Notes and the payment of accrued interest. | ||||||||||
[9] | As part of the September 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 at the time of the September Recapitalization. |
LONG-TERM DEBT AND FINANCING -
LONG-TERM DEBT AND FINANCING - Repayments (Details) $ in Thousands | Mar. 31, 2021CAD ($) | |
Borrowings: | ||
Future annual minimum repayments | $ 655,740 | |
DIP Facility | ||
Borrowings: | ||
Future annual minimum repayments | 126,735 | [1] |
Less: Debt issue costs (a) | (6,312) | [1] |
Filter Group financing | ||
Borrowings: | ||
Future annual minimum repayments | 4,617 | [2] |
Credit facility | ||
Borrowings: | ||
Future annual minimum repayments | 227,189 | [3] |
10.25 % term loan | ||
Borrowings: | ||
Future annual minimum repayments | 289,904 | [4] |
7.0% $13M subordinated notes | ||
Borrowings: | ||
Future annual minimum repayments | 13,607 | [5] |
Not later than one year | ||
Borrowings: | ||
Future annual minimum repayments | 654,180 | |
Not later than one year | DIP Facility | ||
Borrowings: | ||
Future annual minimum repayments | 126,735 | [1] |
Less: Debt issue costs (a) | (6,312) | [1] |
Not later than one year | Filter Group financing | ||
Borrowings: | ||
Future annual minimum repayments | 3,057 | [2] |
Not later than one year | Credit facility | ||
Borrowings: | ||
Future annual minimum repayments | 227,189 | [3] |
Not later than one year | 10.25 % term loan | ||
Borrowings: | ||
Future annual minimum repayments | 289,904 | [4] |
Not later than one year | 7.0% $13M subordinated notes | ||
Borrowings: | ||
Future annual minimum repayments | 13,607 | [5] |
1-3 years | ||
Borrowings: | ||
Future annual minimum repayments | 1,560 | |
1-3 years | Filter Group financing | ||
Borrowings: | ||
Future annual minimum repayments | $ 1,560 | [2] |
[1] | As discussed in Note 1, the Company filed and received the Court Order under the CCAA on March 9, 2021. In conjunction with the CCAA filing, the Company entered into the DIP Facility for US$125 million. Just Energy Ontario L.P., Just Energy Group Inc. and Just Energy (U.S.) Corp. are the borrowers under the DIP Facility and are supported by guarantees of certain subsidiaries and affiliates and secured by a super-priority charge against and attaching to the property that secures the obligations arising under the $335 million Credit Facility, created by the Court Order. The DIP Facility has an interest rate of 13%, paid quarterly in arrears. The DIP Facility terminates at the earlier of: (a) December 31, 2021, (b) the implementation date of the CCAA plan, (c) the lifting of the stay in the CCAA proceedings or (d) the termination of the CCAA proceedings. On March 9, 2021, the Company borrowed US$100 million and borrowed the remaining US$25 million on April 6, 2021. For consideration for making the DIP Facility available, the Company paid a 1% origination fee and a 1% commitment fee. | |
[2] | 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 payable monthly. Filter Group did not file under the CCAA and accordingly, the stay does not apply to Filter Group and any amounts outstanding under the loan payable to Home Trust Company. | |
[3] | On March 18, 2021, Just Energy Ontario L.P, Just Energy (U.S.) Corp. and Just Energy Group Inc. entered into an Accommodation and Support Agreement (the “Lender Support Agreement”) with the lenders under the $335 million Credit Facility. Under the Lender Support Agreement, the lenders agreed to allow issuance or renewals of Letters of Credit under the $335 million Credit Facility during the pendency of the CCAA proceedings within certain restrictions. In return, the Company has agreed to continue paying interest and fees at the non-default rate on the outstanding advances and Letters of Credit under the $335 million Credit Facility. The amount of Letters of Credit that may be issued is limited to the greater of $46.1 million (excluding the Letters of Credit guaranteed by Export Development Canada under its Account Performance Security Guarantee Program), plus any amount the Company has repaid; and $125 million.As part of the September Recapitalization, Just Energy extended the $335 million 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 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 the Filter Group. 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 a result of the CCAA filing, the borrowers are in default under the Credit Facility. However, any potential actions by the lenders have been stayed pursuant to the Court Order. In addition, pursuant to the Lender Support Agreement, the lenders have agreed to continue to provide access to the issuance of Letters of Credit. As at March 31, 2021, the Company had Letter of Credit capacity of $4.5 million available.The outstanding Advances are all Prime rate advances 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%. As at March 31, 2021, the Canadian prime rate was 2.45% and the U.S. prime rate was 3.25%. As at March 31, 2021, $227.2 million has been drawn against the facility, $41.7 of letters of credit outstanding has been issued under the Canadian and U.S. facilities and $57.7 of Letters of Credit are outstanding under the LC Facility. As a result of the CCAA filing, the Credit Facility has been reclassified to short-term reflecting the potential acceleration of the debt allowed under the Credit Facility. Additionally, all deferred debt issue costs have been accelerated in the period ended March 31, 2021 to reflect the current classification and presented in Reorganization costs in the Consolidated Statements of Loss. | |
[4] | As part of the September 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%. The balance at March 31, 2021 includes an accrual of $13.9 million for interest payable on the notes. As a result of the CCAA filing, the Company is in default under the 10.25% Term Loan, as described below. However, any potential actions by the lenders under the 10.25% Term Loan have been stayed pursuant to the Court Order, and the Company is not issuing additional notes equal to the capitalized interest. As a result, the prepayment fee has been accelerated and accrued and is presented in the Reorganization cost on the Consolidated Statement of Loss. | |
[5] | As part of the September Recapitalization, Just Energy issued $15 million principal amount of 7.0% subordinated notes (“7.0% 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. The balance at March 31, 2021 includes an accrual of $0.4 million for capitalized interest payable on the notes. The 7.0% Subordinated Notes had a principal amount of $15 million as at September 28, 2020, which was reduced to $13.2 million through a tender offer for no consideration on October 19, 2020. As a result of the CCAA filing, the Company is in default under the 7.0% Subordinated Notes’ Trust Indenture agreement. However, any potential actions by the lenders under the 7.0% Subordinated Notes have been stayed pursuant to the Court Order and the Company is not issuing additional notes equal to the capitalized interest. Given this acceleration option, the 7.0% Subordinated Notes have been classified as current. Additionally, all deferred debt issue costs have been accelerated to the period ended March 31, 2021 to reflect the current classification and presented in Reorganization costs in the Consolidated Statements of Loss. |
LONG-TERM DEBT AND FINANCING _2
LONG-TERM DEBT AND FINANCING - Long- Term Debt (Details) - CAD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | ||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt, beginning balance | $ 782,003 | $ 725,372 | |||
Cash inflows (outflows) | 99,524 | 26,718 | |||
Foreign exchange | (17,077) | 18,131 | |||
Payment in Kind ("PIK") | 15,551 | ||||
Non-cash changes | $ 11,782 | (145,467) | |||
(Gain) Loss on Recapitalization | 78,794 | ||||
Long-term debt, ending balance | 782,003 | 655,740 | 782,003 | ||
DIP Facility | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Cash inflows (outflows) | [1] | 120,423 | |||
Long-term debt, ending balance | [1] | 120,423 | |||
Filter Group financing | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt, beginning balance | [2] | 9,690 | 17,577 | ||
Cash inflows (outflows) | [2] | (5,073) | (7,887) | ||
Long-term debt, ending balance | [2] | 9,690 | 4,617 | 9,690 | |
Credit facility | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt, beginning balance | [3] | 234,745 | 199,753 | ||
Cash inflows (outflows) | [3] | (13,826) | 34,812 | ||
Non-cash changes | [3] | 6,270 | 180 | ||
Long-term debt, ending balance | [3] | 234,745 | 227,189 | 234,745 | |
10.25 % term loan | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Foreign exchange | [4] | (17,077) | |||
Payment in Kind ("PIK") | [4] | 15,123 | |||
Non-cash changes | [4] | 291,858 | |||
Long-term debt, ending balance | [4] | 289,904 | |||
7.0% $13M subordinated notes | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Cash inflows (outflows) | (2,000) | ||||
Payment in Kind ("PIK") | 428 | ||||
Non-cash changes | 15,179 | ||||
Long-term debt, ending balance | 13,607 | ||||
Unsecured term loan | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt, beginning balance | [5] | 280,535 | 240,094 | ||
Cash inflows (outflows) | [5] | 17,163 | |||
Foreign exchange | [5] | 17,613 | |||
Non-cash changes | (281,632) | 5,665 | [5] | ||
(Gain) Loss on Recapitalization | 1,097 | ||||
Long-term debt, ending balance | [5] | 280,535 | 280,535 | ||
6.75% $100M convertible debentures | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt, beginning balance | [6] | 90,187 | 87,520 | ||
Non-cash changes | [6] | (74,544) | 2,667 | ||
(Gain) Loss on Recapitalization | [6] | (15,643) | |||
Long-term debt, ending balance | [6] | 90,187 | 90,187 | ||
6.75% $160M convertible debentures | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt, beginning balance | [7] | 153,995 | 150,945 | ||
Non-cash changes | [7] | (101,955) | 3,050 | ||
(Gain) Loss on Recapitalization | [7] | (52,040) | |||
Long-term debt, ending balance | [7] | 153,995 | 153,995 | ||
6.5% convertible bonds | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt, beginning balance | [8] | 12,851 | 29,483 | ||
Cash inflows (outflows) | [8] | (17,370) | |||
Foreign exchange | [8] | 518 | |||
Non-cash changes | [8] | (643) | 220 | ||
(Gain) Loss on Recapitalization | [8] | (12,208) | |||
Long-term debt, ending balance | [8] | 12,851 | 12,851 | ||
Short-term borrowings | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt, beginning balance | (253,485) | (479,101) | |||
Long-term debt, ending balance | (253,485) | (654,180) | (253,485) | ||
Long-term borrowings | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt, beginning balance | 528,518 | 246,271 | |||
Long-term debt, ending balance | $ 528,518 | $ 1,560 | $ 528,518 | ||
[1] | As discussed in Note 1, the Company filed and received the Court Order under the CCAA on March 9, 2021. In conjunction with the CCAA filing, the Company entered into the DIP Facility for US$125 million. Just Energy Ontario L.P., Just Energy Group Inc. and Just Energy (U.S.) Corp. are the borrowers under the DIP Facility and are supported by guarantees of certain subsidiaries and affiliates and secured by a super-priority charge against and attaching to the property that secures the obligations arising under the $335 million Credit Facility, created by the Court Order. The DIP Facility has an interest rate of 13%, paid quarterly in arrears. The DIP Facility terminates at the earlier of: (a) December 31, 2021, (b) the implementation date of the CCAA plan, (c) the lifting of the stay in the CCAA proceedings or (d) the termination of the CCAA proceedings. On March 9, 2021, the Company borrowed US$100 million and borrowed the remaining US$25 million on April 6, 2021. For consideration for making the DIP Facility available, the Company paid a 1% origination fee and a 1% commitment fee. | ||||
[2] | 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 payable monthly. Filter Group did not file under the CCAA and accordingly, the stay does not apply to Filter Group and any amounts outstanding under the loan payable to Home Trust Company. | ||||
[3] | On March 18, 2021, Just Energy Ontario L.P, Just Energy (U.S.) Corp. and Just Energy Group Inc. entered into an Accommodation and Support Agreement (the “Lender Support Agreement”) with the lenders under the $335 million Credit Facility. Under the Lender Support Agreement, the lenders agreed to allow issuance or renewals of Letters of Credit under the $335 million Credit Facility during the pendency of the CCAA proceedings within certain restrictions. In return, the Company has agreed to continue paying interest and fees at the non-default rate on the outstanding advances and Letters of Credit under the $335 million Credit Facility. The amount of Letters of Credit that may be issued is limited to the greater of $46.1 million (excluding the Letters of Credit guaranteed by Export Development Canada under its Account Performance Security Guarantee Program), plus any amount the Company has repaid; and $125 million.As part of the September Recapitalization, Just Energy extended the $335 million 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 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 the Filter Group. 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 a result of the CCAA filing, the borrowers are in default under the Credit Facility. However, any potential actions by the lenders have been stayed pursuant to the Court Order. In addition, pursuant to the Lender Support Agreement, the lenders have agreed to continue to provide access to the issuance of Letters of Credit. As at March 31, 2021, the Company had Letter of Credit capacity of $4.5 million available.The outstanding Advances are all Prime rate advances 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%. As at March 31, 2021, the Canadian prime rate was 2.45% and the U.S. prime rate was 3.25%. As at March 31, 2021, $227.2 million has been drawn against the facility, $41.7 of letters of credit outstanding has been issued under the Canadian and U.S. facilities and $57.7 of Letters of Credit are outstanding under the LC Facility. As a result of the CCAA filing, the Credit Facility has been reclassified to short-term reflecting the potential acceleration of the debt allowed under the Credit Facility. Additionally, all deferred debt issue costs have been accelerated in the period ended March 31, 2021 to reflect the current classification and presented in Reorganization costs in the Consolidated Statements of Loss. | ||||
[4] | As part of the September 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%. The balance at March 31, 2021 includes an accrual of $13.9 million for interest payable on the notes. As a result of the CCAA filing, the Company is in default under the 10.25% Term Loan, as described below. However, any potential actions by the lenders under the 10.25% Term Loan have been stayed pursuant to the Court Order, and the Company is not issuing additional notes equal to the capitalized interest. As a result, the prepayment fee has been accelerated and accrued and is presented in the Reorganization cost on the Consolidated Statement of Loss. | ||||
[5] | As part of the September Recapitalization, the 8.75% loan was exchanged for its pro-rata share of the 10.25% term loan and 786,982 common shares. The 8.75% loan had US$207.0 million outstanding plus accrued interest. | ||||
[6] | As part of the September Recapitalization, the 6.5% $100M convertible debentures were exchanged for 3,592,069 common shares along with its pro-rata share of the 7.0% Subordinated Notes and the payment of accrued interest. | ||||
[7] | As part of the September 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% Subordinated Notes and the payment of accrued interest. | ||||
[8] | As part of the September Recapitalization, the 6.5% convertible bonds were exchanged for its pro-rata share of the 10.25% term loan and 35,737 common shares. $9.2 million of the 6.5% convertible bonds were outstanding plus accrued interest at the time of the September Recapitalization. |
LONG-TERM DEBT AND FINANCING _3
LONG-TERM DEBT AND FINANCING - Finance costs (Details) - CAD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | ||
Borrowings: | ||||
Finance costs | $ 86,620 | $ 106,945 | $ 87,779 | |
DIP Facility | ||||
Borrowings: | ||||
Finance costs | [1] | 1,490 | ||
Filter Group financing | ||||
Borrowings: | ||||
Finance costs | [2] | 627 | 1,793 | 875 |
Credit facility | ||||
Borrowings: | ||||
Finance costs | [3] | 20,544 | 23,736 | 20,715 |
10.25 % term loan | ||||
Borrowings: | ||||
Finance costs | [4] | 14,785 | ||
7.0% $13M subordinated notes | ||||
Borrowings: | ||||
Finance costs | [5] | 557 | ||
Face amount | 13,000 | 13,000 | ||
Unsecured term loan | ||||
Borrowings: | ||||
Finance costs | [6] | 18,055 | 35,089 | 8,999 |
6.75% $100M convertible debentures | ||||
Borrowings: | ||||
Finance costs | [7] | 4,762 | 9,417 | 8,819 |
Face amount | 100,000 | 100,000 | ||
6.75% $160M convertible debentures | ||||
Borrowings: | ||||
Finance costs | [8] | 6,948 | 13,850 | 13,598 |
Face amount | 160,000 | 160,000 | ||
6.5% convertible bonds | ||||
Borrowings: | ||||
Finance costs | [9] | 539 | 2,746 | 18,387 |
Supplier finance and others | ||||
Borrowings: | ||||
Finance costs | [10] | $ 18,313 | $ 20,314 | $ 16,386 |
[1] | As discussed in Note 1, the Company filed and received the Court Order under the CCAA on March 9, 2021. In conjunction with the CCAA filing, the Company entered into the DIP Facility for US$125 million. Just Energy Ontario L.P., Just Energy Group Inc. and Just Energy (U.S.) Corp. are the borrowers under the DIP Facility and are supported by guarantees of certain subsidiaries and affiliates and secured by a super-priority charge against and attaching to the property that secures the obligations arising under the $335 million Credit Facility, created by the Court Order. The DIP Facility has an interest rate of 13%, paid quarterly in arrears. The DIP Facility terminates at the earlier of: (a) December 31, 2021, (b) the implementation date of the CCAA plan, (c) the lifting of the stay in the CCAA proceedings or (d) the termination of the CCAA proceedings. On March 9, 2021, the Company borrowed US$100 million and borrowed the remaining US$25 million on April 6, 2021. For consideration for making the DIP Facility available, the Company paid a 1% origination fee and a 1% commitment fee. | |||
[2] | 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 payable monthly. Filter Group did not file under the CCAA and accordingly, the stay does not apply to Filter Group and any amounts outstanding under the loan payable to Home Trust Company. | |||
[3] | On March 18, 2021, Just Energy Ontario L.P, Just Energy (U.S.) Corp. and Just Energy Group Inc. entered into an Accommodation and Support Agreement (the “Lender Support Agreement”) with the lenders under the $335 million Credit Facility. Under the Lender Support Agreement, the lenders agreed to allow issuance or renewals of Letters of Credit under the $335 million Credit Facility during the pendency of the CCAA proceedings within certain restrictions. In return, the Company has agreed to continue paying interest and fees at the non-default rate on the outstanding advances and Letters of Credit under the $335 million Credit Facility. The amount of Letters of Credit that may be issued is limited to the greater of $46.1 million (excluding the Letters of Credit guaranteed by Export Development Canada under its Account Performance Security Guarantee Program), plus any amount the Company has repaid; and $125 million.As part of the September Recapitalization, Just Energy extended the $335 million 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 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 the Filter Group. 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 a result of the CCAA filing, the borrowers are in default under the Credit Facility. However, any potential actions by the lenders have been stayed pursuant to the Court Order. In addition, pursuant to the Lender Support Agreement, the lenders have agreed to continue to provide access to the issuance of Letters of Credit. As at March 31, 2021, the Company had Letter of Credit capacity of $4.5 million available.The outstanding Advances are all Prime rate advances 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%. As at March 31, 2021, the Canadian prime rate was 2.45% and the U.S. prime rate was 3.25%. As at March 31, 2021, $227.2 million has been drawn against the facility, $41.7 of letters of credit outstanding has been issued under the Canadian and U.S. facilities and $57.7 of Letters of Credit are outstanding under the LC Facility. As a result of the CCAA filing, the Credit Facility has been reclassified to short-term reflecting the potential acceleration of the debt allowed under the Credit Facility. Additionally, all deferred debt issue costs have been accelerated in the period ended March 31, 2021 to reflect the current classification and presented in Reorganization costs in the Consolidated Statements of Loss. | |||
[4] | As part of the September 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%. The balance at March 31, 2021 includes an accrual of $13.9 million for interest payable on the notes. As a result of the CCAA filing, the Company is in default under the 10.25% Term Loan, as described below. However, any potential actions by the lenders under the 10.25% Term Loan have been stayed pursuant to the Court Order, and the Company is not issuing additional notes equal to the capitalized interest. As a result, the prepayment fee has been accelerated and accrued and is presented in the Reorganization cost on the Consolidated Statement of Loss. | |||
[5] | As part of the September Recapitalization, Just Energy issued $15 million principal amount of 7.0% subordinated notes (“7.0% 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. The balance at March 31, 2021 includes an accrual of $0.4 million for capitalized interest payable on the notes. The 7.0% 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. As a result of the CCAA filing, the Company is in default under the 7.0% Subordinated Notes’ Trust Indenture agreement. However, any potential actions by the lenders under the 7.0% Subordinated Notes have been stayed pursuant to the Court Order and the Company is not issuing additional notes equal to the capitalized interest. Given this acceleration option, the 7.0% Subordinated Notes have been classified as current. Additionally, all deferred debt issue costs have been accelerated to the period ended March 31, 2021 to reflect the current classification and presented in Reorganization costs in the Consolidated Statements of Loss. | |||
[6] | As part of the September Recapitalization, the 8.75% loan was exchanged for its pro-rata share of the 10.25% term loan and 786,982 common shares. The 8.75% loan had US$207.0 million outstanding plus accrued interest. | |||
[7] | As part of the September Recapitalization, the 6.5% $100M convertible debentures were exchanged for 3,592,069 common shares along with its pro-rata share of the 7.0% Subordinated Notes and the payment of accrued interest. | |||
[8] | As part of the September 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% Subordinated Notes and the payment of accrued interest. | |||
[9] | As part of the September 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 at the time of the September Recapitalization. | |||
[10] | Supplier finance and other costs for the quarter ended March 31, 2021 primarily consists of charges for extended payment terms. An amount of $3 million was accrued but not paid as at March 31, 2021. |
LONG-TERM DEBT AND FINANCING _4
LONG-TERM DEBT AND FINANCING - Additional information (Details) $ in Millions | Mar. 18, 2021CAD ($) | Oct. 19, 2020CAD ($) | Mar. 31, 2021CAD ($)shares | Mar. 31, 2020CAD ($) | Mar. 31, 2019CAD ($) | Apr. 06, 2021USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2021CAD ($) | Mar. 09, 2021USD ($) | Mar. 09, 2021CAD ($) | Dec. 31, 2020 | Sep. 28, 2020CAD ($) | |||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Total borrowings | $ 782,003,000 | $ 655,740,000 | |||||||||||||
Repayments of borrowings classified as financing activities. | $ 5,073,000 | 25,257,000 | $ 173,366,000 | ||||||||||||
Borrowings, letters of credit | 41,700,000 | ||||||||||||||
Home Trust Company [Member] | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Total borrowings | $ 5,500,000 | ||||||||||||||
Interest rate | 8.99% | 8.99% | |||||||||||||
Home Trust Company [Member] | Bottom of range | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Borrowings, term (Year) | 3 years | ||||||||||||||
Home Trust Company [Member] | Top of range | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Borrowings, term (Year) | 5 years | ||||||||||||||
Companies' Creditors Arrangement Act [Member] | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Notional amount | $ 125 | ||||||||||||||
Total borrowings | $ 100 | ||||||||||||||
Interest rate | 13.00% | 13.00% | |||||||||||||
Remaining Borrowings | $ 25 | ||||||||||||||
Origination Fee Percentage | 1.00% | 1.00% | |||||||||||||
Commitment Fee Percentage | 1.00% | 1.00% | |||||||||||||
Credit facility | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Total borrowings | $ 335,000,000 | 236,389,000 | [1] | $ 227,189,000 | [1] | $ 335,000,000 | |||||||||
Available capacity under Letter of Credit | 4,500,000 | ||||||||||||||
Proceeds from borrowings | $ 227,200,000 | ||||||||||||||
Borrowings, letters of credit | $ 57,700,000 | ||||||||||||||
Total borrowing costs incurred | [1] | $ 1,644,000 | |||||||||||||
Credit facility | Prime Rate | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Basis rate | 4.25% | 4.25% | |||||||||||||
Credit facility | Libor | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Basis rate | 5.25% | 5.25% | |||||||||||||
Credit facility | Canadian bank prime rate | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Basis rate | 2.45% | 2.45% | |||||||||||||
Credit facility | US Prime Rate | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Basis rate | 3.25% | 3.25% | |||||||||||||
Credit facility | Debt agreement recapitalization [member] | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Total borrowings | $ 335,000,000 | $ 335,000,000 | |||||||||||||
Lender Support Agreement [Member] | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Renewals Of Letter Of Credit | 335,000,000 | ||||||||||||||
Advances To Outstanding Letter Of Credit | 335,000,000 | ||||||||||||||
Limited Amount Of Letter Of Credit | 46,100,000 | ||||||||||||||
Repayments of borrowings classified as financing activities. | $ 125,000,000 | ||||||||||||||
10.25 % term loan | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Total borrowings | $ 205.9 | $ 289,904,000 | [2] | ||||||||||||
Interest rate | 10.25% | 10.25% | 10.25% | ||||||||||||
Borrowings, conversion of convertible instruments, shares issued (in shares) | shares | 786,982 | ||||||||||||||
Debt Issuance Notes Capitalized Accrual | $ 13,900,000 | ||||||||||||||
7.0% $13M subordinated notes | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Notional amount | $ 13,000,000 | 13,000,000 | |||||||||||||
Total borrowings | $ 13,607,000 | [3] | 15,000,000 | ||||||||||||
Interest rate | 7.00% | 7.00% | 7.00% | ||||||||||||
Debt Instrument Principal Amounts | $ 13,200,000 | $ 15,000,000 | |||||||||||||
Subordinated convertible debentures, Term | 6 years | ||||||||||||||
Debt Instrument Annual Interest Rate | 7.00% | 7.00% | |||||||||||||
Debt Instrument Semi Annual Interest Rate | 7.00% | 7.00% | |||||||||||||
Debt Issuance Notes Capitalized Accrual | $ 400,000 | ||||||||||||||
Consideration for tender offer | $ 0 | ||||||||||||||
Unsecured term loan | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Total borrowings | $ 280,535,000 | [4] | $ 207 | ||||||||||||
Interest rate | 8.75% | 8.75% | 8.75% | 8.75% | |||||||||||
6.75% $100M convertible debentures | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Notional amount | $ 100,000,000 | $ 100,000,000 | |||||||||||||
Total borrowings | $ 90,187,000 | [5] | 100,000,000 | ||||||||||||
Interest rate | 6.75% | 6.75% | 6.75% | ||||||||||||
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] | |||||||||||||||
Notional amount | $ 160,000,000 | $ 160,000,000 | |||||||||||||
Total borrowings | $ 153,995,000 | [6] | $ 160,000,000 | ||||||||||||
Interest rate | 6.75% | 6.75% | 6.75% | ||||||||||||
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] | |||||||||||||||
Total borrowings | $ 12,851,000 | [7] | $ 9,200,000 | ||||||||||||
Interest rate | 6.50% | 6.50% | 6.50% | ||||||||||||
Borrowings, conversion of convertible instruments, shares issued (in shares) | shares | 35,737 | ||||||||||||||
Supplier finance and others | |||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||
Accruals classified as current | $ 3,000,000 | ||||||||||||||
[1] | On March 18, 2021, Just Energy Ontario L.P, Just Energy (U.S.) Corp. and Just Energy Group Inc. entered into an Accommodation and Support Agreement (the “Lender Support Agreement”) with the lenders under the $335 million Credit Facility. Under the Lender Support Agreement, the lenders agreed to allow issuance or renewals of Letters of Credit under the $335 million Credit Facility during the pendency of the CCAA proceedings within certain restrictions. In return, the Company has agreed to continue paying interest and fees at the non-default rate on the outstanding advances and Letters of Credit under the $335 million Credit Facility. The amount of Letters of Credit that may be issued is limited to the greater of $46.1 million (excluding the Letters of Credit guaranteed by Export Development Canada under its Account Performance Security Guarantee Program), plus any amount the Company has repaid; and $125 million.As part of the September Recapitalization, Just Energy extended the $335 million 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 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 the Filter Group. 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 a result of the CCAA filing, the borrowers are in default under the Credit Facility. However, any potential actions by the lenders have been stayed pursuant to the Court Order. In addition, pursuant to the Lender Support Agreement, the lenders have agreed to continue to provide access to the issuance of Letters of Credit. As at March 31, 2021, the Company had Letter of Credit capacity of $4.5 million available.The outstanding Advances are all Prime rate advances 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%. As at March 31, 2021, the Canadian prime rate was 2.45% and the U.S. prime rate was 3.25%. As at March 31, 2021, $227.2 million has been drawn against the facility, $41.7 of letters of credit outstanding has been issued under the Canadian and U.S. facilities and $57.7 of Letters of Credit are outstanding under the LC Facility. As a result of the CCAA filing, the Credit Facility has been reclassified to short-term reflecting the potential acceleration of the debt allowed under the Credit Facility. Additionally, all deferred debt issue costs have been accelerated in the period ended March 31, 2021 to reflect the current classification and presented in Reorganization costs in the Consolidated Statements of Loss. | ||||||||||||||
[2] | As part of the September 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%. The balance at March 31, 2021 includes an accrual of $13.9 million for interest payable on the notes. As a result of the CCAA filing, the Company is in default under the 10.25% Term Loan, as described below. However, any potential actions by the lenders under the 10.25% Term Loan have been stayed pursuant to the Court Order, and the Company is not issuing additional notes equal to the capitalized interest. As a result, the prepayment fee has been accelerated and accrued and is presented in the Reorganization cost on the Consolidated Statement of Loss. | ||||||||||||||
[3] | As part of the September Recapitalization, Just Energy issued $15 million principal amount of 7.0% subordinated notes (“7.0% 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. The balance at March 31, 2021 includes an accrual of $0.4 million for capitalized interest payable on the notes. The 7.0% 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. As a result of the CCAA filing, the Company is in default under the 7.0% Subordinated Notes’ Trust Indenture agreement. However, any potential actions by the lenders under the 7.0% Subordinated Notes have been stayed pursuant to the Court Order and the Company is not issuing additional notes equal to the capitalized interest. Given this acceleration option, the 7.0% Subordinated Notes have been classified as current. Additionally, all deferred debt issue costs have been accelerated to the period ended March 31, 2021 to reflect the current classification and presented in Reorganization costs in the Consolidated Statements of Loss. | ||||||||||||||
[4] | As part of the September Recapitalization, the 8.75% loan was exchanged for its pro-rata share of the 10.25% term loan and 786,982 common shares. The 8.75% loan had US$207.0 million outstanding plus accrued interest. | ||||||||||||||
[5] | As part of the September Recapitalization, the 6.5% $100M convertible debentures were exchanged for 3,592,069 common shares along with its pro-rata share of the 7.0% Subordinated Notes and the payment of accrued interest. | ||||||||||||||
[6] | As part of the September 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% Subordinated Notes and the payment of accrued interest. | ||||||||||||||
[7] | As part of the September Recapitalization, the 6.5% convertible bonds were exchanged for its pro-rata share of the 10.25% term loan and 35,737 common shares. $9.2 million of the 6.5% convertible bonds were outstanding plus accrued interest at the time of the September Recapitalization. |
REPORTABLE BUSINESS SEGMENTS -
REPORTABLE BUSINESS SEGMENTS - (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Operating segments: | |||||||
Sales | $ 2,740,037 | $ 3,153,652 | $ 3,441,393 | $ 2,740,037 | $ 3,153,652 | ||
Cost of goods sold | 4,512,166 | 2,517,299 | |||||
Gross margin | (1,772,129) | 636,353 | $ 678,571 | ||||
Depreciation and amortization | 23,929 | 41,648 | 27,195 | ||||
Administrative expenses | 142,391 | 167,936 | 165,328 | ||||
Selling and marketing expenses | 179,521 | 220,820 | 211,738 | ||||
Other operating expenses | 40,752 | 92,300 | 129,204 | ||||
Segment profit (loss) | (2,158,722) | 113,649 | 130,262 | ||||
Finance costs | (86,620) | (106,945) | (87,779) | ||||
Restructuring costs | (7,118) | (14,844) | |||||
Gain on Recapitalization transaction, net | $ 51,400 | 51,360 | |||||
Unrealized gain (loss) on derivative instruments and other | 91,736 | (213,417) | (87,459) | ||||
Realized gain (loss) of derivative instruments | 1,877,339 | (24,386) | (83,776) | ||||
Impairment of goodwill, intangible assets and other | (114,990) | (92,401) | |||||
Other expenses (income), net | (1,951) | 32,660 | 2,312 | ||||
Reorganization costs | (41,623) | ||||||
Provision for income taxes | (2,308) | (7,393) | (11,832) | ||||
LOSS FROM CONTINUING OPERATIONS | (392,897) | (298,233) | (138,272) | ||||
Profit from discontinued operations | 468 | (11,426) | (128,259) | ||||
LOSS FOR THE YEAR | (392,429) | (309,659) | (266,531) | ||||
Capital expenditures | 11,555 | 43,542 | |||||
Total goodwill | 163,770 | 272,692 | 339,921 | 163,770 | 272,692 | 339,921 | |
Mass Market | |||||||
Operating segments: | |||||||
Sales | 1,530,617 | 1,757,245 | 2,010,054 | ||||
Cost of goods sold | 2,915,079 | 1,285,122 | 1,523,090 | ||||
Gross margin | (1,384,462) | 472,123 | 486,964 | ||||
Depreciation and amortization | 20,342 | 38,224 | 24,906 | ||||
Administrative expenses | 35,403 | 37,780 | 42,573 | ||||
Selling and marketing expenses | 107,932 | 141,548 | 142,560 | ||||
Other operating expenses | 29,898 | 84,271 | 123,798 | ||||
Segment profit (loss) | (1,578,037) | 170,300 | 150,386 | ||||
Restructuring costs | (2,741) | ||||||
Capital expenditures | 10,382 | 39,474 | |||||
Total goodwill | $ 163,770 | 172,429 | 181,358 | 163,770 | 172,429 | 181,358 | |
Commercial | |||||||
Operating segments: | |||||||
Sales | 1,209,420 | 1,396,407 | 1,431,338 | ||||
Cost of goods sold | 1,597,087 | 1,232,177 | 1,239,731 | ||||
Gross margin | (387,667) | 164,230 | 191,607 | ||||
Depreciation and amortization | 3,587 | 3,424 | 2,289 | ||||
Administrative expenses | 16,673 | 20,262 | 32,377 | ||||
Selling and marketing expenses | 71,589 | 79,272 | 69,178 | ||||
Other operating expenses | 10,854 | 8,029 | 5,406 | ||||
Segment profit (loss) | (490,370) | 53,243 | 79,068 | ||||
Restructuring costs | (3,289) | ||||||
Capital expenditures | 1,173 | 4,068 | |||||
Total goodwill | $ 100,263 | $ 158,563 | 100,263 | 158,563 | |||
Corporate and shared services | |||||||
Operating segments: | |||||||
Administrative expenses | 90,315 | 109,894 | 90,378 | ||||
Segment profit (loss) | $ (90,315) | $ (109,894) | (99,192) | ||||
Restructuring costs | $ (8,814) |
REPORTABLE BUSINESS SEGMENTS _2
REPORTABLE BUSINESS SEGMENTS - Geographical Disclosure (Details) - CAD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Operating segments: | |||||
Sales | $ 2,740,037 | $ 3,153,652 | $ 3,441,393 | $ 2,740,037 | $ 3,153,652 |
Non-current assets | 252,320 | 399,752 | 252,320 | 399,752 | |
Canada | |||||
Operating segments: | |||||
Sales | 303,666 | 509,910 | 613,944 | ||
Non-current assets | 178,802 | 233,678 | 178,802 | 233,678 | |
U.S. | |||||
Operating segments: | |||||
Sales | 2,436,371 | 2,643,742 | $ 2,827,449 | ||
Non-current assets | $ 73,518 | $ 166,074 | $ 73,518 | $ 166,074 |
INCOME TAXES (Details)
INCOME TAXES (Details) $ in Thousands, $ in Millions | Mar. 31, 2021USD ($) | Mar. 31, 2021CAD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2020CAD ($) |
Statement Line Items [Line Items] | ||||
Deferred tax assets | $ 71,607 | $ 23,191 | ||
Unused tax losses [member] | ||||
Statement Line Items [Line Items] | ||||
Deferred tax assets | $ 688 | $ 381 |
INCOME TAXES - Components of Ta
INCOME TAXES - Components of Tax Expenses (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
INCOME TAXES | |||
Current tax expense | $ 2,697 | $ 7,047 | $ 7,622 |
Origination and reversal of temporary differences | (100,900) | (90,459) | (35,825) |
Expense arising from previously unrecognized tax loss or temporary difference | 100,511 | 90,805 | 40,035 |
Deferred tax expense | (389) | 346 | 4,210 |
Provision for income taxes | $ 2,308 | $ 7,393 | $ 11,832 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of the Effective Tax Rate (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
INCOME TAXES | |||
Loss before income taxes | $ (390,589) | $ (290,840) | $ (126,440) |
Combined statutory Canadian federal and provincial income tax rate | 26.50% | 26.50% | 26.50% |
Income tax recovery based on statutory rate | $ (103,506) | $ (77,073) | $ (33,507) |
Expense of mark to market loss and other temporary differences not recognized | 100,511 | 90,805 | 40,035 |
Variance between combined Canadian tax rate and the tax rate applicable to foreign earnings | (5,589) | (5,554) | (3,841) |
Other permanent items | 10,892 | (785) | 9,145 |
Total provision for income taxes | $ 2,308 | $ 7,393 | $ 11,832 |
INCOME TAXES - Reconciliation_2
INCOME TAXES - Reconciliation of the Effective Tax Rate (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement Line Items [Line Items] | ||
Deferred tax assets | $ 71,607 | $ 23,191 |
Offset of deferred income taxes | (70,612) | (22,550) |
Net deferred income tax assets | 995 | 641 |
Total deferred income tax liabilities | (70,612) | (22,550) |
Offset of deferred income taxes | 70,612 | 22,550 |
Excess of tax over book basis | ||
Statement Line Items [Line Items] | ||
Deferred tax assets | 71,607 | 23,191 |
Book to tax differences on other assets | ||
Statement Line Items [Line Items] | ||
Total deferred income tax liabilities | $ (70,612) | (18,367) |
Convertible debentures | ||
Statement Line Items [Line Items] | ||
Total deferred income tax liabilities | $ (4,183) |
INCOME TAXES - Movement in Defe
INCOME TAXES - Movement in Deferred Tax Balances (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement Line Items [Line Items] | ||
Balance | $ 641 | $ 115 |
Recognized in profit or loss | 389 | (346) |
Recognized in OCI | 872 | |
Other | (35) | |
Balance | 995 | 641 |
Mark to market (gains) losses on derivative instruments | ||
Statement Line Items [Line Items] | ||
Balance | (17,586) | |
Recognized in profit or loss | 17,586 | |
Partnership income deferred for tax | ||
Statement Line Items [Line Items] | ||
Balance | (3,542) | |
Recognized in profit or loss | 3,542 | |
Book to tax differences on other assets | ||
Statement Line Items [Line Items] | ||
Balance | 4,824 | 27,316 |
Recognized in profit or loss | (3,794) | (23,364) |
Recognized in OCI | 872 | |
Other | (35) | |
Balance | 995 | 4,824 |
Convertible debentures | ||
Statement Line Items [Line Items] | ||
Balance | (4,183) | (6,073) |
Recognized in profit or loss | $ 4,183 | 1,890 |
Balance | $ (4,183) |
INCOME TAXES - Unrecognized Def
INCOME TAXES - Unrecognized Deferred Tax Assets (Details) - CAD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Mark to market (gains) losses on derivative instruments | ||
Statement Line Items [Line Items] | ||
Deferred income tax assets not reflected | $ 10,886 | $ 31,897 |
Excess of tax over book basis | ||
Statement Line Items [Line Items] | ||
Deferred income tax assets not reflected | $ 74,699 | $ 47,038 |
SHAREHOLDERS' CAPITAL (Details)
SHAREHOLDERS' CAPITAL (Details) $ / shares in Units, $ in Thousands | Sep. 28, 2020CAD ($)$ / sharesshares | Dec. 31, 2020CAD ($) | Mar. 31, 2021USD ($)shares | Mar. 31, 2021CAD ($)$ / shares | Mar. 31, 2020USD ($) | Mar. 31, 2020CAD ($) | Mar. 31, 2019$ / shares | Mar. 31, 2021CAD ($)$ / sharesshares | Mar. 18, 2021CAD ($) | Mar. 09, 2021CAD ($) | Oct. 19, 2020CAD ($) | ||
Disclosure of classes of share capital [line items] | |||||||||||||
Number of shares issued and fully paid (in shares) | shares | 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 | $ 0.125 | |||||||||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 18,700 | ||||||||||||
Total borrowings | $ 782,003 | $ 655,740 | |||||||||||
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 | $ 51,400 | $ 51,360 | |||||||||||
Gains (losses) on recapitalization transaction | 78,800 | ||||||||||||
Recapitalization transaction Expenses incurred | $ 27,400 | ||||||||||||
Filter Group | |||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||
settlement of litigation, cash payment | $ 1,800 | ||||||||||||
Settlement of litigation, common shares (in shares) | shares | 429,958 | ||||||||||||
6.75% $100M convertible debentures | |||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||
Interest rate | 6.75% | 6.75% | 6.75% | ||||||||||
Total borrowings | $ 100,000 | $ 90,187 | [1] | ||||||||||
6.75% $160M convertible debentures | |||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||
Interest rate | 6.75% | 6.75% | 6.75% | ||||||||||
Total borrowings | 160,000 | $ 153,995 | [2] | ||||||||||
7.0% subordinated notes | |||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||
Interest rate | 7.00% | 7.00% | |||||||||||
Total borrowings | 15,000 | ||||||||||||
7.0% subordinated notes | Bottom of range | |||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||
Total borrowings | $ 13,200 | ||||||||||||
Credit facility | |||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||
Total borrowings | $ 236,389 | [3] | $ 227,189 | [3] | $ 335,000 | $ 335,000 | |||||||
Credit facility | Debt agreement recapitalization [member] | |||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||
Total borrowings | $ 335,000 | $ 335,000 | |||||||||||
Unsecured term loan | |||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||
Interest rate | 8.75% | 8.75% | 8.75% | 8.75% | |||||||||
Total borrowings | $ 207,000,000 | $ 280,535 | [4] | ||||||||||
Value of shares issued to term loan lenders | $ 3,670 | ||||||||||||
10.25 % term loan | |||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||
Interest rate | 10.25% | 10.25% | 10.25% | ||||||||||
Total borrowings | $ 205,900,000 | $ 289,904 | [5] | ||||||||||
Convertible debentures | |||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||
Interest rate | 8.50% | 8.50% | |||||||||||
6.5% convertible bonds | |||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||
Interest rate | 6.50% | 6.50% | 6.50% | ||||||||||
Total borrowings | $ 12,851 | [6] | $ 9,200 | ||||||||||
Preference shares | |||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||
Par value per share (in CAD per share) | $ / shares | $ 0 | ||||||||||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 0 | $ 1.0625 | |||||||||||
Dividends recognised as distributions to owners of parent | $ 6,600 | ||||||||||||
[1] | As part of the September Recapitalization, the 6.5% $100M convertible debentures were exchanged for 3,592,069 common shares along with its pro-rata share of the 7.0% Subordinated Notes and the payment of accrued interest. | ||||||||||||
[2] | As part of the September 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% Subordinated Notes and the payment of accrued interest. | ||||||||||||
[3] | On March 18, 2021, Just Energy Ontario L.P, Just Energy (U.S.) Corp. and Just Energy Group Inc. entered into an Accommodation and Support Agreement (the “Lender Support Agreement”) with the lenders under the $335 million Credit Facility. Under the Lender Support Agreement, the lenders agreed to allow issuance or renewals of Letters of Credit under the $335 million Credit Facility during the pendency of the CCAA proceedings within certain restrictions. In return, the Company has agreed to continue paying interest and fees at the non-default rate on the outstanding advances and Letters of Credit under the $335 million Credit Facility. The amount of Letters of Credit that may be issued is limited to the greater of $46.1 million (excluding the Letters of Credit guaranteed by Export Development Canada under its Account Performance Security Guarantee Program), plus any amount the Company has repaid; and $125 million.As part of the September Recapitalization, Just Energy extended the $335 million 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 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 the Filter Group. 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 a result of the CCAA filing, the borrowers are in default under the Credit Facility. However, any potential actions by the lenders have been stayed pursuant to the Court Order. In addition, pursuant to the Lender Support Agreement, the lenders have agreed to continue to provide access to the issuance of Letters of Credit. As at March 31, 2021, the Company had Letter of Credit capacity of $4.5 million available.The outstanding Advances are all Prime rate advances 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%. As at March 31, 2021, the Canadian prime rate was 2.45% and the U.S. prime rate was 3.25%. As at March 31, 2021, $227.2 million has been drawn against the facility, $41.7 of letters of credit outstanding has been issued under the Canadian and U.S. facilities and $57.7 of Letters of Credit are outstanding under the LC Facility. As a result of the CCAA filing, the Credit Facility has been reclassified to short-term reflecting the potential acceleration of the debt allowed under the Credit Facility. Additionally, all deferred debt issue costs have been accelerated in the period ended March 31, 2021 to reflect the current classification and presented in Reorganization costs in the Consolidated Statements of Loss. | ||||||||||||
[4] | As part of the September Recapitalization, the 8.75% loan was exchanged for its pro-rata share of the 10.25% term loan and 786,982 common shares. The 8.75% loan had US$207.0 million outstanding plus accrued interest. | ||||||||||||
[5] | As part of the September 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%. The balance at March 31, 2021 includes an accrual of $13.9 million for interest payable on the notes. As a result of the CCAA filing, the Company is in default under the 10.25% Term Loan, as described below. However, any potential actions by the lenders under the 10.25% Term Loan have been stayed pursuant to the Court Order, and the Company is not issuing additional notes equal to the capitalized interest. As a result, the prepayment fee has been accelerated and accrued and is presented in the Reorganization cost on the Consolidated Statement of Loss. | ||||||||||||
[6] | As part of the September Recapitalization, the 6.5% convertible bonds were exchanged for its pro-rata share of the 10.25% term loan and 35,737 common shares. $9.2 million of the 6.5% convertible bonds were outstanding plus accrued interest at the time of the September Recapitalization. |
SHAREHOLDERS' CAPITAL - Classes
SHAREHOLDERS' CAPITAL - Classes of share capital (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Disclosure of classes of share capital [line items] | |||
Balance, beginning of period | $ (495,288) | $ (172,090) | |
Balance, end of period | $ (585,023) | (495,288) | $ (172,090) |
Issued capital | |||
Disclosure of classes of share capital [line items] | |||
Balance, beginning of period (in shares) | 9,256,536 | ||
Balance, beginning of period | $ 1,246,829 | $ 1,235,503 | |
Balance, end of period (in shares) | 48,078,637 | 9,256,536 | |
Balance, end of period | $ 1,537,863 | $ 1,246,829 | 1,235,503 |
Ordinary shares | Issued capital | |||
Disclosure of classes of share capital [line items] | |||
Balance, beginning of period (in shares) | 4,594,371 | 4,533,211 | |
Balance, beginning of period | $ 1,099,864 | $ 1,088,538 | 1,079,055 |
Share-based awards exercised (in shares) | 91,854 | 61,160 | |
Share-based units exercised | $ 929 | $ 11,326 | $ 9,483 |
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 | 4,533,211 |
Balance, end of period | $ 1,537,863 | $ 1,099,864 | $ 1,088,538 |
Preference shares | Issued capital | |||
Disclosure of classes of share capital [line items] | |||
Balance, beginning of period (in shares) | 4,662,165 | 4,662,165 | |
Balance, beginning of period | $ 146,965 | $ 146,965 | 136,771 |
Issuance cost | $ 253 | ||
Balance, end of period (in shares) | 4,662,165 | 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) |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS (Details) | Oct. 09, 2020 | Mar. 31, 2021$ / shares | Nov. 12, 2020$ / shares |
Statement Line Items [Line Items] | |||
Percentage of cap on total number of equity-based securities | 5.00% | ||
Stock option plan | |||
Statement Line Items [Line Items] | |||
Number of share options outstanding in share-based payment arrangement at end of period | 650,000 | ||
Weighted average exercise price of share options outstanding in share-based payment arrangement at end of period (in CAD per share) | $ 8.46 | ||
Market price of the options (in CAD per share) | $ 5.70 | ||
Vesting period, share options granted | 3 | ||
Number of days considered for calculating weighted trading price | 5 days | ||
Deferred Share Units | |||
Statement Line Items [Line Items] | |||
Annual deferred share grants compensation percentage | 15.00% | ||
Number of days considered for calculating weighted trading price | 5 days |
SHARE-BASED COMPENSATION PLAN_2
SHARE-BASED COMPENSATION PLANS - Restricted Share Units (Details) - Restricted Share Units | Oct. 09, 2020employee | Mar. 31, 2021 | Dec. 01, 2020USD ($) |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Granted | 23,513 | ||
RSUs granted to number of employees | employee | 1 | ||
Number of days considered for calculating weighted trading price | 5 days | ||
Volume weighted trading price | $ | $ 8.37 |
SHARE-BASED COMPENSATION PLAN_3
SHARE-BASED COMPENSATION PLANS - Deferred Share Units (Details) - Deferred Share Units | Feb. 03, 2021 | Mar. 31, 2021USD ($) |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Granted | 4,054 | 190,983 |
Volume weighted trading price | $ 8.37 | |
Number of days considered for calculating weighted trading price | 5 days |
SHARE-BASED COMPENSATION PLAN_4
SHARE-BASED COMPENSATION PLANS - Performance Share Units (Details) - Performance Share Units | 12 Months Ended |
Mar. 31, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Granted | 0 |
Performance period for PSUs | 36 months |
OTHER EXPENSES (Details)
OTHER EXPENSES (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
OTHER EXPENSES | |||
Employee expense, included in administrative expenses | $ 64.6 | $ 80.3 | $ 93.8 |
Employee expense included in selling and marketing expenses | $ 110.3 | $ 153.4 | $ 162.1 |
OTHER EXPENSES - Other operatin
OTHER EXPENSES - Other operating expenses (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
OTHER EXPENSES | |||
Amortization of intangible assets | $ 16,166 | $ 27,997 | $ 22,680 |
Depreciation of property and equipment | 7,763 | 13,651 | 4,515 |
Bad debt expense | 34,260 | 80,050 | 123,288 |
Share-based compensation | 6,492 | 12,250 | 5,916 |
Other operating expenses | $ 64,681 | $ 133,948 | $ 156,399 |
OTHER EXPENSES - Employee expen
OTHER EXPENSES - Employee expenses (Details) - CAD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
OTHER EXPENSES | |||
Wages, salaries and commissions | $ 160,127 | $ 211,457 | $ 233,575 |
Benefits | 14,755 | 22,218 | 22,315 |
Employee benefits expense | $ 174,882 | $ 233,675 | $ 255,890 |
PROVISIONS (Details)
PROVISIONS (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
PROVISIONS | ||
Balance, beginning of the period | $ 1,529 | $ 6,616 |
Provisions recorded this year | 3,870 | 6,206 |
Provisions utilized this year | (1,388) | (1,563) |
Foreign exchange impact | 2,775 | (9,730) |
Balance, end of the period | $ 6,786 | $ 1,529 |
RESTRUCTURING COSTS (Details)
RESTRUCTURING COSTS (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2019 | |
RESTRUCTURING COSTS | ||
Restructuring costs | $ 7,118 | $ 14,844 |
Restructuring provision | $ 2,500 |
REORGANIZATION COSTS (Details)
REORGANIZATION COSTS (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2021CAD ($) | |
REORGANIZATION COSTS | |
Reorganization costs | $ 9.3 |
Termination agreements | $ 26.9 |
PROFIT (LOSS) PER SHARE - Earni
PROFIT (LOSS) PER SHARE - Earnings (Details) - CAD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
BASIC EARNINGS (LOSS) PER SHARE | |||
Profit (loss) from continuing operations available to shareholders | $ (392,897) | $ (298,233) | $ (138,272) |
Earnings (loss) from continuing operations available to shareholders, net of tax | $ (392,429) | $ (309,659) | $ (138,272) |
Basic weighted average shares outstanding (in shares) | 34,125,199 | 9,856,639 | 9,732,966 |
Basic earnings (loss) per share from continuing operations available to shareholders (in CAD per share) | $ (11.51) | $ (30.26) | $ (14.21) |
Basic earnings (loss) per share available to shareholders (in CAD per share) | $ (11.50) | $ (31.42) | $ (27.39) |
DILUTED EARNINGS (LOSS) PER SHARE | |||
Profit (loss) from continuing operations available to shareholders | $ (392,897) | $ (298,233) | $ (138,272) |
Adjusted earnings (loss) from continuing operations available to shareholders | $ (392,429) | $ (298,233) | $ (138,272) |
Basic weighted average shares outstanding (in shares) | 34,125,199 | 9,856,639 | 9,732,966 |
Restricted share and performance bonus grants (in shares) | 33,430,000 | 80,761,000 | 73,030,000 |
Deferred share grants (in shares) | 6,437 | 8,841 | 4,331 |
Dilutive effect, options | 305,357 | ||
Shares outstanding on a diluted basis (in shares) | 34,562,601 | 9,946,241 | 9,810,327 |
Diluted earnings (loss) from continuing operations per shareavailable to shareholders (in CAD per share) | $ (11.51) | $ (30.26) | $ (14.21) |
Diluted earnings (loss) per share available to shareholders (in CAD per share) | $ (11.50) | $ (31.42) | $ (27.39) |
Restricted share units | |||
DILUTED EARNINGS (LOSS) PER SHARE | |||
Dilutive effect, convertible instruments | 4,252 | ||
Deferred Share Units | |||
DILUTED EARNINGS (LOSS) PER SHARE | |||
Dilutive effect, convertible instruments | 87,926 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - Discontinued operations $ in Millions | Apr. 10, 2020CAD ($) | Mar. 31, 2021CAD ($) |
Discontinued operations: | ||
Customers impacted | 1,000 | |
Gain (loss) on disposal group | $ 1.1 | $ 1.5 |
DISCONTINUED OPERATIONS - held
DISCONTINUED OPERATIONS - held for sale (Details) - CAD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Discontinued operations: | ||||
Cash and cash equivalents | $ 215,989 | $ 26,093 | $ 9,888 | $ 48,861 |
Current trade and other receivables, net | 328,195 | 403,907 | ||
Income taxes recoverable | 8,238 | 6,641 | ||
Other current assets | 169,720 | 203,270 | ||
Total current assets | 753,736 | 694,378 | ||
Property and equipment | 17,827 | 28,794 | ||
Intangible assets | 70,723 | 98,266 | ||
Assets classified as held for sale | 7,611 | |||
Trade and other payables | $ 909,589 | 685,665 | ||
Liabilities classified as held for sale | 4,906 | |||
Discontinued operations | ||||
Discontinued operations: | ||||
Cash and cash equivalents | 898 | |||
Current trade and other receivables, net | 4,978 | |||
Income taxes recoverable | 12 | |||
Other current assets | 1,140 | |||
Total current assets | 7,028 | |||
Property and equipment | 38 | |||
Intangible assets | 545 | |||
Trade and other payables | 4,823 | |||
Deferred revenue | 83 | |||
Discontinued operations | Classified as held for sale | ||||
Discontinued operations: | ||||
Assets classified as held for sale | 7,611 | |||
Liabilities classified as held for sale | $ 4,906 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021CAD ($)item | Jun. 07, 2021CAD ($) | Mar. 31, 2012USD ($) | |
Commitments and Contingencies: | |||
Number of office lease terminated | item | 8 | ||
Lease liabilities | $ 2,531,870 | ||
Borrowings, letters of credit | 41,700 | ||
Legal proceedings provision | $ 5,700 | ||
Legal proceedings | |||
Commitments and Contingencies: | |||
Lease liabilities | 1,300 | ||
Number of plaintiffs - federal case | 1,800 | ||
Number of plaintiffs - ohio case | 8,000 | ||
DIP | |||
Commitments and Contingencies: | |||
Financial effect | 46,300 | ||
Estimated financial effect of contingent liabilities | 46,300 | ||
Letters of credit | |||
Commitments and Contingencies: | |||
Borrowings, letters of credit | 99,400 | ||
Amount of contingent liabilities backed by assets | 27,800 | ||
Contingent liability for guarantees | |||
Commitments and Contingencies: | |||
Financial effect | 67,700 | ||
Estimated financial effect of contingent liabilities | $ 67,700 | ||
Bottom of range | Property, plant and equipment subject to operating leases | |||
Commitments and Contingencies: | |||
Leasing period | 1 | ||
Top of range | Property, plant and equipment subject to operating leases | |||
Commitments and Contingencies: | |||
Leasing period | 6 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Commitments (Details) $ in Thousands | Mar. 31, 2021CAD ($) |
Disclosure of contingent liabilities [line items] | |
Gas, electricity and non-commodity contracts | $ 2,531,870 |
Not later than one year | |
Disclosure of contingent liabilities [line items] | |
Gas, electricity and non-commodity contracts | 1,339,637 |
1-3 years | |
Disclosure of contingent liabilities [line items] | |
Gas, electricity and non-commodity contracts | 960,907 |
4-5 years | |
Disclosure of contingent liabilities [line items] | |
Gas, electricity and non-commodity contracts | 183,269 |
More than 5 years | |
Disclosure of contingent liabilities [line items] | |
Gas, electricity and non-commodity contracts | $ 48,057 |
RELATED PARTY TRANSACTIONS - (D
RELATED PARTY TRANSACTIONS - (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
RELATED PARTY TRANSACTIONS | ||
Salaries and benefits | $ 3,953 | $ 2,334 |
Share-based compensation expense, net | 200 | 625 |
Key management personnel compensation | $ 4,153 | $ 2,959 |
Ownership Interest ( as a percent) | 10.00% |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION - Components of changes in Non-cash Working Capital (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Accounts receivable and unbilled revenue, net | $ 60,602 | $ 33,839 | $ (35,427) |
Gas in storage | 3,185 | (3,234) | (601) |
Prepaid expenses and deposits | 50,270 | (89,087) | (128,911) |
Provisions | 6,145 | (4,607) | 4,309 |
Trade and other payables | (188,393) | 106,271 | 174,958 |
Restricted cash | 2,782 | ||
Adjustments required to reflect net cash receipts from gas sales | (265) | 812 | 4,186 |
Increase (decrease) in working capital | $ (65,674) | $ 43,994 | $ 18,514 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Millions | Jun. 21, 2021CAD ($)$ / h | Feb. 19, 2021$ / h |
SUBSEQUENT EVENTS | ||
Increased electricity demand real time market price | 9,000 | |
HB 4492 Financing | ERCOT | ||
SUBSEQUENT EVENTS | ||
Increased electricity demand real time market price | 9,000 | |
Notional amount | $ | $ 0 |