Document And Entity Information
Document And Entity Information | 9 Months Ended |
Dec. 31, 2021 | |
Document Information [Line Items] | |
Document Type | 6-K |
Document Period End Date | Dec. 31, 2021 |
Entity Registrant Name | Just Energy Group Inc. |
Entity Central Index Key | 0001538789 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q3 |
Current Fiscal Year End Date | --03-31 |
Amendment Flag | false |
INTERIM CONDENSED CONSOLIDATED
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - CAD ($) $ in Thousands | Dec. 31, 2021 | Mar. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 175,392 | $ 215,989 |
Restricted cash | 3,406 | 1,139 |
Trade and other receivables, net | 549,065 | 340,201 |
Gas in storage | 23,702 | 2,993 |
Fair value of derivative financial assets | 209,768 | 25,026 |
Income taxes recoverable | 13,044 | 8,238 |
Other current assets | 183,704 | 163,405 |
Total current assets | 1,158,081 | 756,991 |
Non-current assets | ||
Investments | 32,889 | |
Property and equipment, net | 12,976 | 17,827 |
Intangible assets, net | 63,730 | 70,723 |
Goodwill | 163,954 | 163,770 |
Fair value of derivative financial assets | 96,962 | 10,600 |
Deferred income tax assets | 673 | 3,744 |
Other non-current assets | 46,077 | 35,262 |
Total non-current assets | 384,372 | 334,815 |
TOTAL ASSETS | 1,542,453 | 1,091,806 |
Current liabilities | ||
Trade and other payables | 993,621 | 921,595 |
Deferred revenue | 8,090 | 1,408 |
Income taxes payable | 3,235 | 4,126 |
Fair value of derivative financial liabilities | 11,450 | 13,977 |
Provisions | 866 | 6,786 |
Current portion of long-term debt | 623,385 | 654,180 |
Total current liabilities | 1,640,647 | 1,602,072 |
Non-current liabilities | ||
Long-term debt | 211 | 1,560 |
Fair value of derivative financial liabilities | 24,664 | 61,169 |
Deferred income tax liabilities | 4 | 2,749 |
Other non-current liabilities | 3,688 | 19,078 |
Total non-current liabilities | 28,567 | 84,556 |
TOTAL LIABILITIES | 1,669,214 | 1,686,628 |
SHAREHOLDERS' DEFICIT | ||
Shareholders' capital | 1,537,863 | 1,537,863 |
Contributed deficit | (10,189) | (11,634) |
Accumulated deficit | (1,749,527) | (2,211,728) |
Accumulated other comprehensive income | 95,475 | 91,069 |
Non-controlling interest | (383) | (392) |
TOTAL SHAREHOLDERS' DEFICIT | (126,761) | (594,822) |
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT | $ 1,542,453 | $ 1,091,806 |
INTERIM CONDENSED CONSOLIDATE_2
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONTINUING OPERATIONS | ||||
Sales | $ 650,691 | $ 627,016 | $ 1,964,132 | $ 2,050,973 |
Cost of goods sold | 434,261 | 446,571 | 1,585,921 | 1,380,680 |
GROSS MARGIN | 216,430 | 180,445 | 378,211 | 670,293 |
INCOMES (EXPENSES) | ||||
Administrative | (32,473) | (30,408) | (99,424) | (112,507) |
Selling and marketing | (43,570) | (42,269) | (128,029) | (137,140) |
Other operating expenses | (19,956) | (10,239) | (41,249) | (50,915) |
Finance costs | (14,271) | (17,677) | (39,079) | (69,274) |
Reorganization costs | (40,984) | (79,570) | ||
Restructuring Costs | (7,118) | |||
Gain on September 2020 Recapitalization transaction, net | 1,026 | 51,367 | ||
Unrealized gain (loss) on derivative instruments and other | (274,841) | (71,558) | 304,811 | (79,177) |
Realized gain (loss) on derivative instruments | 78,575 | (56,905) | 144,921 | (276,808) |
Realized gain (loss) on investment | (10,273) | 18,727 | ||
Other income (expense), net | 154 | (1,431) | (392) | (4,488) |
Profit (loss) from continuing operations before income taxes | (141,209) | (49,016) | 458,927 | (15,767) |
Provision (recovery) for income taxes | (1,978) | 3,311 | (3,190) | 4,618 |
PROFIT (LOSS) FROM CONTINUING OPERATIONS | (139,231) | (52,327) | 462,117 | (20,385) |
DISCONTINUED OPERATIONS | ||||
Loss after tax from discontinued operations | 4,788 | 630 | ||
PROFIT (LOSS) FOR THE PERIOD | (139,231) | (47,539) | 462,117 | (19,755) |
Attributable to: | ||||
Shareholders of Just Energy | (139,207) | (52,315) | 462,201 | (20,260) |
Discontinued operations | 4,788 | 630 | ||
Non-controlling interest | (24) | (12) | (84) | (125) |
PROFIT (LOSS) FOR THE PERIOD | $ (139,231) | $ (47,539) | $ 462,117 | $ (19,755) |
Earnings per share from continuing operations | ||||
Basic | $ (2.90) | $ (1.09) | $ 9.61 | $ (0.77) |
Diluted | (2.90) | (1.09) | 9.45 | (0.77) |
Loss per share from discontinued operations | ||||
Basic | 0.10 | 0.02 | ||
Diluted | 0.10 | 0.02 | ||
Earnings per share available to shareholders | ||||
Basic | (2.90) | (0.99) | 9.61 | (0.75) |
Diluted | $ (2.90) | $ (0.99) | $ 9.45 | $ (0.75) |
INTERIM CONDENSED CONSOLIDATE_3
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement Table [Table] | ||||
PROFIT (LOSS) FOR THE PERIOD | $ (139,231) | $ (47,539) | $ 462,117 | $ (19,755) |
Other comprehensive profit (loss) to be reclassified to profit or loss in subsequent periods: | ||||
Unrealized gain on translation of foreign operations | (555) | 3,514 | 4,406 | 4,308 |
Unrealized loss on translation of foreign operations from discontinued operations | (945) | (156) | ||
Loss on translation of foreign operations disposed and reclassified to Interim Condensed Consolidated Statements of Income (Loss) | (1,248) | (415) | ||
Other comprehensive income, net of tax, exchange differences on translation | (555) | 1,321 | 4,406 | 3,737 |
TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD, NET OF TAX | (139,786) | (46,218) | 466,523 | (16,018) |
Total comprehensive income (loss) attributable to: | ||||
Shareholders of Just Energy | (139,762) | (46,206) | 466,607 | (15,893) |
Non-controlling interest | (24) | (12) | (84) | (125) |
TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD, NET OF TAX | $ (139,786) | $ (46,218) | $ 466,523 | $ (16,018) |
INTERIM CONDENSED CONSOLIDATE_4
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT - CAD ($) $ in Thousands | Accumulated earnings | Dividends and distributions | Accumulated deficit | Accumulated other comprehensive income | Shareholders' capitalCommon shares | Shareholders' capitalPreferred shares | Shareholders' capital | Equity component of convertible debentures | Contributed deficit | Non-controlling interests | Total |
Balance, beginning of period at Mar. 31, 2020 | $ 140,446 | $ (1,950,003) | $ 84,651 | $ 1,099,864 | $ 146,965 | $ 13,029 | $ (29,826) | $ (414) | |||
PROFIT (LOSS) FOR THE PERIOD | (19,630) | (125) | $ (19,755) | ||||||||
Balance, end of period at Dec. 31, 2020 | 120,816 | (1,950,026) | $ (1,829,210) | 88,388 | 1,537,863 | $ 1,537,863 | (12,469) | (415) | (215,843) | ||
Dividends and distributions declared and paid | (23) | ||||||||||
Other comprehensive income | 3,737 | ||||||||||
Issuance of shares-September 2020 Recapitalization | 438,642 | ||||||||||
Issuance cost associated with September 2020 Recapitalization | (1,572) | ||||||||||
Share-based units exercised | 929 | (929) | |||||||||
Settled with common shares | (146,965) | (13,029) | |||||||||
Add: Share-based compensation expense | 5,657 | ||||||||||
Transferred from equity component | 13,029 | ||||||||||
Less: Share-based units exercised | 929 | (929) | |||||||||
Share-based compensation adjustment | (423) | ||||||||||
Non-cash deferred share grants | 23 | ||||||||||
Foreign exchange impact on non-controlling interest | 124 | ||||||||||
Balance, beginning of period at Mar. 31, 2020 | 140,446 | (1,950,003) | 84,651 | 1,099,864 | 146,965 | $ 13,029 | (29,826) | (414) | |||
Balance, end of period at Mar. 31, 2021 | (261,702) | (1,950,026) | 91,069 | 1,537,863 | $ 0 | 1,537,863 | (11,634) | (392) | (594,822) | ||
Issuance of shares-September 2020 Recapitalization | 438,642 | ||||||||||
Issuance cost associated with September 2020 Recapitalization | (1,572) | ||||||||||
Share-based units exercised | 929 | ||||||||||
Less: Share-based units exercised | 929 | ||||||||||
PROFIT (LOSS) FOR THE PERIOD | 462,201 | (84) | 462,117 | ||||||||
Balance, end of period at Dec. 31, 2021 | $ 200,499 | $ (1,950,026) | $ (1,749,527) | 95,475 | 1,537,863 | $ 1,537,863 | (10,189) | (383) | $ (126,761) | ||
Other comprehensive income | $ 4,406 | ||||||||||
Issuance of shares-September 2020 Recapitalization | $ 0 | ||||||||||
Add: Share-based compensation expense | $ 1,445 | ||||||||||
Foreign exchange impact on non-controlling interest | $ 93 |
INTERIM CONDENSED CONSOLIDATE_5
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - CAD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING | ||
Profit from continuing operations before income taxes | $ 458,927 | $ (15,767) |
Loss from discontinued operations before income taxes | 681 | |
Profit before income taxes | 458,927 | (15,086) |
Items not affecting cash | ||
Amortization and depreciation | 20,023 | 18,462 |
Share-based compensation expense | 1,445 | 5,657 |
Financing charges, non-cash portion | 4,807 | 22,459 |
Loss (gain) on sale of subsidiaries, net. | 423 | |
Unrealized (gain) loss in fair value of derivative instruments and other | (304,811) | 79,177 |
Realized gain on investment | (18,727) | |
Gain from September 2020 Recapitalization transaction | (78,792) | |
Net change in working capital balances | (231,823) | (30,387) |
Liabilities subject to compromise | 33,803 | |
Adjustment for discontinued operations, net | (4,120) | |
Income taxes paid | (2,900) | (8,823) |
Cash outflow from operating activities | (39,256) | (11,030) |
INVESTING | ||
Purchase of property and equipment | (757) | (333) |
Purchase of intangible assets | (8,038) | (7,638) |
Proceeds from sale of investments | 51,616 | |
Proceeds from disposition of subsidiaries | 4,618 | |
Cash inflow (outflow) from investing activities | 42,821 | (3,353) |
FINANCING | ||
Proceeds from DIP Facility | 31,425 | |
Repayment of long-term debt | (2,222) | (4,204) |
Leased asset payments | (2,000) | (3,062) |
Debt issuance costs | (6,625) | |
Share swap payout | (21,488) | |
Credit facilities payments | (72,533) | (3,770) |
Proceeds from issuance of common stock, net | 100,969 | |
Cash inflow (outflow) from financing activities | (45,330) | 61,820 |
Effect of foreign currency translation on cash balances | 1,168 | (6,895) |
Net cash inflow (outflow) | (40,597) | 40,542 |
Cash and cash equivalents, beginning of period | 215,989 | 26,093 |
Cash and cash equivalents, end of period | 175,392 | 66,635 |
Supplemental cash flow information: | ||
Interest paid | $ 34,272 | $ 46,815 |
ORGANIZATION
ORGANIZATION | 9 Months Ended |
Dec. 31, 2021 | |
ORGANIZATION | |
ORGANIZATION | 1. ORGANIZATION Just Energy Group Inc. (“Just Energy” or the “Company”) is a corporation established under the laws of Canada to hold securities of its directly or indirectly owned operating subsidiaries and affiliates. The registered office of Just Energy is First Canadian Place, 100 King Street West, Toronto, Ontario, Canada. The Interim Condensed Consolidated Financial Statements consist of Just Energy and its subsidiaries and affiliates. The Interim Condensed Consolidated Financial Statements were approved by the Board of Directors on February 16, 2022. 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 20, 2021. 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 applied for and received creditor protection under the Companies’ Creditors Arrangement Act (Canada) (“CCAA”) from the Ontario Superior Court of Justice (Commercial List) (the “Ontario Court”) and under Chapter 15 (“Chapter 15”) of the Bankruptcy Code in the United States from the Bankruptcy Court of the Southern District of Texas, Houston Division (the “Court Orders” or “CCAA Proceedings”). Protection under the Court Orders allows Just Energy to operate while it restructures its capital structure. As part of the CCAA filing, the Company entered into a USD $125 million Debtor-In-Possession (“DIP Facility”) financing with certain affiliates of Pacific Investment Management Company. The Company entered into Qualifying Support Agreements with its largest commodity supplier and ISO services provider. The Company entered a Lender Support Agreement with the lenders under its Credit Facility (refer to Note 9(c)). The filings and associated USD $125 million DIP Facility arranged by the Company, enabled Just Energy to continue all operations without interruption throughout the United States (“U.S.”) and Canada and to continue making payments required by ERCOT and satisfy other regulatory obligations. On February 9, 2022, the stay period under the CCAA Proceedings was extended by the Ontario Court to March 4, 2022. In connection with the CCAA Proceedings, the Company has identified the following obligations that are subject to compromise: Amounts in 000's Trade and other payables $ 585,674 Current portion of long-term debt 464,023 Total liabilities subject to compromise $ 1,049,697 On September 15, 2021, the Ontario Court approved the Company’s request to establish a claims process to identify and determine claims against the Company and its subsidiaries that are subject to the ongoing CCAA Proceedings (the “Claims Procedure Order”). As part of the CCAA Proceedings and in accordance with the Claims Procedure Order, Just Energy continues to review and determine which claims will be allowed, modified or disallowed, which may result in additional liabilities subject to compromise that are not currently reflected in the Interim Condensed Consolidated Financial Statements. Please see Note 16(b) for further information. The common shares of the Company are listed on the TSX Venture Exchange, under the symbol “JE” and on the OTC Pink Market under the symbol “JENGQ”. On June 16, 2021, Texas House Bill 4492 (“HB 4492”) became law in Texas. HB 4492 provides a mechanism for recovery of (i) ancillary service charges above USD $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”), incurred by various parties, including the Company, during the Weather Event, through certain securitization structures. On October 13, 2021, the Public Utility Commission of Texas (“PUCT”) approved the financing order (“Final Order”) authorizing the securitization of these costs by ERCOT. On December 7, 2021, ERCOT filed its calculation with the PUCT in accordance with the PUCT final order implementing HB 4492. The Company is expecting to receive reimbursement of Costs in the amount of approximately USD $147.5 million (the “Cost Recovery”). The Cost Recovery is expected to be received in the Spring of 2022. Management determined that the Company has reasonable assurance as defined under IAS 20, Accounting for government grants and assistance |
OPERATIONS
OPERATIONS | 9 Months Ended |
Dec. 31, 2021 | |
OPERATIONS | |
OPERATIONS | 2. OPERATIONS Just Energy is a retail energy provider specializing in electricity and natural gas commodities and bringing energy efficient solutions, carbon offsets and renewable energy options to customers. Operating in the 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 electricity or natural gas 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 flexibility 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 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. |
FINANCIAL STATEMENT PRESENTATIO
FINANCIAL STATEMENT PRESENTATION | 9 Months Ended |
Dec. 31, 2021 | |
FINANCIAL STATEMENT PRESENTATION | |
FINANCIAL STATEMENT PRESENTATION | 3. FINANCIAL STATEMENT PRESENTATION (a) Compliance with IFRS These Interim Condensed Consolidated Financial Statements have been prepared in accordance with International Accounting Standard (“IAS”) 34, Interim Financial Reporting (b) Basis of presentation and interim reporting These Interim Condensed Consolidated Financial Statements should be read in conjunction with and follow the same accounting policies and methods of application as those used in the March 31, 2021 annual audited consolidated financial statements. The comparative Interim Condensed Consolidated Financial Statements have been corrected from the interim statements previously presented to conform to the presentation of the current Interim Condensed Consolidated Financial Statements. The Interim Condensed Consolidated Financial Statements are presented in Canadian dollars, the functional currency of Just Energy, and all values are rounded to the nearest thousands, except where otherwise indicated. The Interim Condensed 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 interim operating results are not necessarily indicative of the results that may be expected for the full fiscal year ending March 31, 2022, due to seasonal variations resulting in fluctuations in quarterly results. Gas consumption by customers is typically highest in October through March and lowest in April through September. Electricity consumption is typically highest in January through March and July through September and lowest in October through December and April through June. Principles of consolidation The Interim Condensed Consolidated Financial Statements include the accounts of Just Energy and its directly or indirectly owned subsidiaries and affiliates as at December 31, 2021. Subsidiaries and affiliates are consolidated from the date of acquisition and control and continue to be consolidated until the date that such control ceases. The financial statements of the subsidiaries and affiliates are prepared for the same reporting period as Just Energy using consistent accounting policies. All intercompany balances, sales, expenses and unrealized gains and losses resulting from intercompany transactions are eliminated on consolidation. 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, maintaining liquidity, complying with DIP Facility covenants and extending the DIP Facility maturity if required before emergence from CCAA. 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 Interim Condensed Consolidated Financial Statements do not reflect the adjustments to carrying values of assets and liabilities and the reported expenses and Interim Condensed 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 emerging from CCAA as a going concern. (c) Significant accounting judgments, estimates, and assumptions The preparation of the Interim Condensed Consolidated Financial Statements requires the use of estimates and assumptions to be made in applying the accounting policies that affect the reported amount of assets, liabilities, income and expenses. The estimates and related assumptions based on previous experience and other factors are considered reasonable under the circumstances, the results of which form the basis for making the assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. There have been no material changes from the disclosures from the March 31, 2021 annual audited consolidated financial statements and notes to the March 31, 2021 annual audited consolidated financial statements with respect to significant accounting judgments, estimates and assumptions. |
TRADE AND OTHER RECEIVABLES, NE
TRADE AND OTHER RECEIVABLES, NET | 9 Months Ended |
Dec. 31, 2021 | |
TRADE AND OTHER RECEIVABLES, NET | |
TRADE AND OTHER RECEIVABLES, NET | 4. TRADE AND OTHER RECEIVABLES, NET (a) Trade and other receivables, net As at As at December 31, 2021 March 31, 2021 Trade account receivables, net $ 157,781 $ 189,250 Unbilled revenue, net 121,751 103,986 Receivable from ERCOT against HB 4492 187,001 – Accrued gas receivable – 833 Other 82,532 46,132 $ 549,065 $ 340,201 (b) Aging of accounts receivable Customer credit risk The lifetime expected credit loss (“ECL”) reflects Just Energy’s best estimate of losses on the accounts receivable and unbilled revenue balances. Just Energy determines the ECL 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) and for certain Commercial customers in dual-billing markets including Illinois (power), Pennsylvania (power), Massachusetts (power), New York and New Jersey. 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 As at December 31, 2021 March 31, 2021 Current $ 70,316 $ 58,737 1–30 days 13,591 19,415 31–60 days 3,619 3,794 61–90 days 4,665 2,144 Over 90 days 12,840 10,446 $ 105,031 $ 94,536 The unbilled revenue subject to customer credit risk is $102.6 million as at December 31, 2021 (March 31, 2021-$87.1 million). (c) Allowance for doubtful accounts Changes in the allowance for doubtful accounts related to the balances in the table above were as follows: As at As at December 31, 2021 March 31, 2021 Balance, beginning of period $ 23,363 $ 45,832 Provision for doubtful accounts 19,976 34,260 Bad debts written off (28,697) (62,529) Foreign exchange 5,972 5,800 Balance, end of period $ 20,614 $ 23,363 |
OTHER CURRENT AND NON-CURRENT A
OTHER CURRENT AND NON-CURRENT ASSETS | 9 Months Ended |
Dec. 31, 2021 | |
OTHER CURRENT AND NON-CURRENT ASSETS | |
OTHER CURRENT AND NON-CURRENT ASSETS | 5. OTHER CURRENT AND NON-CURRENT ASSETS As at As at (a) Other current assets December 31, 2021 March 31, 2021 Prepaid expenses and deposits $ 67,744 $ 52,216 Customer acquisition costs 39,806 45,681 Green certificates assets 66,339 61,467 Gas delivered in excess of consumption 8,215 650 Inventory 1,600 3,391 $ 183,704 $ 163,405 As at As at (b) Other non-current assets December 31, 2021 March 31, 2021 Customer acquisition costs $ 36,250 $ 27,318 Other long-term assets 9,827 7,944 $ 46,077 $ 35,262 |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended |
Dec. 31, 2021 | |
FINANCIAL INSTRUMENTS | |
FINANCIAL INSTRUMENTS | 6. FINANCIAL INSTRUMENTS (a) Fair value of derivative financial instruments and other The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., an exit price). Management has estimated the value of financial swaps, physical forwards and option contracts for electricity, natural gas, carbon offsets and renewable energy certificates (“RECs”), and generation and transmission capacity contracts using a discounted cash flow method, which employs market forward curves that are either directly sourced from third parties or developed internally based on third-party market data. These curves can be volatile, thus leading to volatility in the mark to market with no immediate impact to cash flows. Gas options and green power options have been valued using the Black option pricing model using the applicable market forward curves and the implied volatility from other market traded options. Management periodically uses non-exchange-traded swap agreements based on cooling degree days and heating degree days (“HDDs”) measured in its utility service territories to reduce the impact of weather volatility on Just Energy’s electricity and natural gas 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 presents unrealized gains (losses) related to Just Energy’s derivative financial instruments classified as fair value through profit or loss and recorded on the Interim Condensed Consolidated Statements of Financial Position as fair value of derivative financial assets and fair value of derivative financial liabilities, with their offsetting values recorded in unrealized gain (loss) in fair value of derivative instruments and other on the Interim Condensed Consolidated Statements of Income. Three months ended December 31, Nine months ended December 31, 2021 2020 2021 2020 Physical forward contracts and options (i) $ (165,771) $ (58,098) $ 193,357 $ (124,865) Financial swap contracts and options (ii) (107,630) (19,349) 113,857 51,316 Foreign exchange forward contracts (238) (6,060) 1,464 (15,139) Unrealized foreign exchange on certain debts (115) 13,649 (2,360) 13,649 Weather derivatives (iii) – (547) (1,896) (1,159) Other derivative options (1,087) (1,153) 389 (2,979) Unrealized gain (loss) of derivative instruments and other $ (274,841) $ (71,558) $ 304,811 $ (79,177) The following table summarizes certain aspects of the fair value of derivative financial assets and liabilities recorded in the Interim Condensed Consolidated Statements of Financial Position as at December 31, 2021: Financial Financial Financial Financial assets assets liabilities liabilities (current) (non-current) (current) (non-current) Physical forward contracts and options (i) $ 133,348 $ 51,453 $ 10,315 $ 21,428 Financial swap contracts and options (ii) 73,576 45,017 1,116 3,106 Foreign exchange forward contracts 1,319 – – 128 Other derivative options 1,525 492 19 2 As at December 31, 2021 $ 209,768 $ 96,962 $ 11,450 $ 24,664 The following table summarizes certain aspects of the fair value of derivative financial assets and liabilities recorded in the consolidated statements 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 $ 10,157 $ 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 3,660 1,253 – – As at March 31, 2021 $ 25,026 $ 10,600 $ 13,977 $ 61,169 Individual derivative asset and liability transactions are offset, and the net amount reported in the Interim Condensed 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 December 31, 2021, to which Just Energy has committed: (i) Physical forward contracts and options consist of: ● Electricity contracts with a total remaining volume of 27,135,906 MWh, a weighted average price of $49.20 /MWh and expiry dates up to December 31, 2029 . ● Natural gas contracts with a total remaining volume of 106,875,145 GJs, a weighted average price of $3.87 /GJ and expiry dates up to October 31, 2025 . ● RECs with a total remaining volume of 3,116,650 MWh, a weighted average price of $26.39 /REC and expiry dates up to December 31, 2029 . ● Green gas certificates with a total remaining volume of 10,000 tonnes, a weighted average price of $15.31 /tonne and expiry dates up to July 28, 2022 . ● Electricity generation capacity contracts with a total remaining volume of 1,628 MWCap, a weighted average price of $4,765.65 /MWCap and expiry dates up to December 31, 2023 . ● Ancillary contracts with a total remaining volume of 1,133,640 MWh, a weighted average price of $27.25 /MWh and expiry dates up to December 31, 2024 . (ii) Financial swap contracts and options consist of: ● Electricity contracts with a total remaining volume of 16,411,986 MWh, a weighted average price of $52.23 /MWh and expiry dates up to December 31, 2025 . ● Natural gas contracts with a total remaining volume of 108,350,809 GJs, a weighted average price of $2.95 /GJ and expiry dates up to December 31, 2026 . ● Ancillary contracts with a total remaining volume of 1,490,328 MWh, a weighted average price of $29.49 /MWh and expiry dates up to December 31, 2023. (iii) Weather derivatives consist of: ● HDD natural gas swaps with price strikes to be set on futures index and temperature strikes from 1,813 F to 4,985 F HDD and an expiry date of March 31, 2022. ● HDD natural gas swaps with price strikes to be set on futures index and temperature strikes from 1,652 F to 4,871 F HDD and an expiry date of March 31, 2023. ● HDD natural gas swaps with price strikes to be set on futures index and temperature strikes from 1,652 F to 4,910 F HDD and an expiry date of March 31, 2024. ● Temperature Contingent Power Call Options with price strikes at various temperature strikes and an expiry date of March 31, 2022. These derivative financial instruments create a credit risk for Just Energy since they have been transacted with a limited number of counterparties. Should any counterparty be unable to fulfill its obligations under the contracts, Just Energy may not be able to realize the financial assets’ balance recognized in the Interim Condensed Consolidated Financial Statements. Fair value (“FV”) hierarchy of derivatives Level 1 The fair value measurements are classified as Level 1 in the FV hierarchy if the fair value is determined using quoted unadjusted market prices. Currently there are no derivatives carried in this level. Level 2 Fair value measurements that require observable inputs other than quoted prices in Level 1, either directly or indirectly, are classified as Level 2 in the FV hierarchy. This could include the use of statistical techniques to derive the FV curve from observable market prices. However, in order to be classified under Level 2, significant inputs must be directly or indirectly observable in the market. Just Energy values its New York Mercantile Exchange (“NYMEX”) financial gas fixed-for-floating swaps under Level 2. Level 3 Fair value measurements that require unobservable market data or use statistical techniques to derive forward curves from observable market data and unobservable inputs are classified as Level 3 in the FV hierarchy. For the electricity 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. Fair value measurement input sensitivity The main cause of changes in the fair value of derivative instruments is changes in the forward curve prices used for the fair value calculations. Just Energy provides a sensitivity analysis of these forward curves under the “Market risk” section of this note. Other inputs, including volatility and correlations, are driven off historical settlements. The following table illustrates the classification of derivative financial assets (liabilities) in the FV hierarchy as at December 31, 2021: Level 1 Level 2 Level 3 Total Derivative financial assets $ – $ 47,912 $ 258,818 $ 306,730 Derivative financial liabilities – – (36,114) (36,114) Total net derivative financial assets $ – $ 47,912 $ 222,704 $ 270,616 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 $ 34,944 $ 35,626 Derivative financial liabilities – – (75,146) (75,146) Total net derivative financial liabilities $ – $ 682 $ (40,202) $ (39,520) 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 by 10%, assuming that all of the other variables had remained constant, loss from continuing operations before income taxes for the three months ended December 31, 2021 would have decreased by $260.4 million. On the contrary, if the energy prices associated with only Level 3 derivative financial instruments including natural gas, electricity, and RECs had fallen by 10%, assuming that all of the other variables had remained constant, loss from continuing operations before income taxes for the three months ended December 31, 2021 would have increased by $245.8 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: Nine months ended Year ended December 31, 2021 March 31, 2021 Balance, beginning of period $ (40,202) $ (85,885) Total gains (losses) 224,170 (2,900) Purchases 49,715 (4,059) Sales (170) (1,670) Settlements (10,809) 54,312 Balance, end of period $ 222,704 $ (40,202) ( b) Classification of non-derivative financial assets and liabilities As at December 31, 2021 and March 31, 2021, 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 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 U.S. dollars could positively or negatively affect Just Energy’s Interim Condensed Consolidated Statements of Income, as a significant portion of Just Energy’s profit or loss 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 higher lower 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 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 decrease 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 gross 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 by 10%, assuming that all of the other variables had remained constant, loss from continuing operations before income taxes for the three months ended December 31, 2021 would have decreased by $252.3 million. On the contrary, a fall of 10% in the energy prices associated with derivative financial instruments including natural gas, electricity and RECs, assuming that all of the other variables had remained constant, loss from continuing operations before income taxes for the three months ended December 31, 2021 would have increased by $289.3 million, primarily as a result of the change in fair value of Just Energy’s derivative financial instruments. (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. (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. Counterparty 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 of the Board of Directors monitor current and potential credit exposure to individual counterparties and also monitor overall aggregate counterparty exposure. However, the failure of a counterparty to meet its contractual obligations could have a material adverse effect on the operations and cash flows of Just Energy. As at December 31, 2021, Just Energy has applied an adjustment factor to determine the fair value of its financial instruments in the amount of $12.9 million (March 31, 2021 – $1.1 million) to accommodate for its counterparties’ risk of default. As at December 31, 2021, the estimated net counterparty credit risk exposure amounted to $229.3 million (March 31, 2021 –$35.6 million), representing the risk relating to Just Energy’s exposure to derivatives that are in an asset position. |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Dec. 31, 2021 | |
INVESTMENTS | |
INVESTMENTS | 7. INVESTMENTS On November 1, 2021, Generac Holdings Inc. (“Generac”) announced the signing of an agreement to acquire all of the issued and outstanding shares of ecobee Inc. (“ecobee”), including all of the ecobee shares held by the Company. The Company held approximately 8% of the ecobee shares. The transaction closed on December 1, 2021 and the Company received $15.6 million cash and 80,281 shares of Generac common stock. The Company subsequently sold all of the Generac shares for a sum of $36 million during December 2021, resulting in total consideration of approximately $51.6 million. This has resulted in a gain on investment of $18.7 million recorded in the Interim Condensed Consolidated Statement of Income for the nine months ended December 31, 2021. The Company could receive up to an additional approximate $10 million in Generac stock over calendar 2022 and 2023, provided that certain performance targets are achieved by ecobee. |
TRADE AND OTHER PAYABLES
TRADE AND OTHER PAYABLES | 9 Months Ended |
Dec. 31, 2021 | |
TRADE AND OTHER PAYABLES | |
TRADE AND OTHER PAYABLES | 8. TRADE AND OTHER PAYABLES As at As at December 31, 2021 March 31, 2021 Commodity suppliers' accruals and payables (a) $ 787,410 $ 712,144 Green provisions and repurchase obligations 72,597 77,882 Sales tax payable 11,043 27,684 Non-commodity trade accruals and accounts payable (b) 91,422 80,573 Current portion of payable to former joint venture partner (c) 25,758 11,467 Accrued gas payable – 544 Other payables 5,391 11,301 $ 993,621 $ 921,595 (a) Includes $529.9 million (March 31, 2021 – $514.7 million) that is subject to compromise depending on the outcome of the CCAA Proceedings. (b) Includes $30.0 million (March 31, 2021 – $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. |
LONG-TERM DEBT AND FINANCING
LONG-TERM DEBT AND FINANCING | 9 Months Ended |
Dec. 31, 2021 | |
LONG-TERM DEBT AND FINANCING | |
LONG-TERM DEBT AND FINANCING | 9. LONG-TERM DEBT AND FINANCING As at As at December 31, 2021 March 31, 2021 DIP Facility (a) $ 158,475 $ 126,735 Less: Debt issue costs (a) (1,297) (6,312) Filter Group financing (b) 2,395 4,617 Credit Facility - subject to compromise (c) 159,977 227,189 Term Loan - subject to compromise (d) 290,493 289,904 Note Indenture - subject to compromise (e) 13,553 13,607 623,596 655,740 Less: Current portion (623,385) (654,180) $ 211 $ 1,560 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) $ 158,475 $ – $ – $ – $ 158,475 Less: Debt issue costs (a) (1,297) – – – (1,297) Filter Group financing (b) 2,184 211 – – 2,395 Credit Facility - subject to compromise (c) 159,977 – – – 159,977 Term Loan - subject to compromise (d) 290,493 – – – 290,493 Note Indenture - subject to compromise (e) 13,553 – – – 13,553 $ 623,385 $ 211 $ – $ – $ 623,596 The following table details the finance costs for the period ended December 31. Interest is expensed based on the effective interest rate. Three months ended December 31, Nine months ended December 31, 2021 2020 2021 2020 DIP Facility (a) $ 8,253 $ – $ 22,651 $ – Filter Group financing (b) 64 165 240 540 7.0% $13M subordinated notes (c) – 280 – 280 Credit Facility (c) 5,492 4,712 15,872 15,229 Term Loan (d) – 8,242 – 8,242 8.75% term loan (f) – – – 18,055 6.75% $100M convertible debentures (g) – – – 4,762 6.75% $160M convertible debentures (h) – – – 6,948 6.5% convertible bonds (i) – – – 536 Supplier finance and others 462 4,278 316 14,682 $ 14,271 $ 17,677 $ 39,079 $ 69,274 (a) As discussed in Note 1, Just Energy 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 USD $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 Credit Facility, created by the Court Order. The DIP Facility has an interest rate of 13% , paid quarterly in arrears. On November 11, 2021, the Company amended the DIP Facility to extend the maturity of the DIP Facility to September 30, 2022. The DIP Facility terminates at the earlier of: (a) September 30, 2022, (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. For consideration for making the DIP Facility available, Just Energy paid a 1% origination fee, a 1% commitment fee on March 9, 2021 and a 1% amendment fee on November 16, 2021. (b) Filter Group has a $2.4 million outstanding loan payable to Home Trust Company (“HTC”). The loan is a result of factoring receivables to finance the cost of rental equipment that matures no later than October 2023 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 HTC. (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 Credit Facility. Under the Lender Support Agreement, the lenders agreed to allow issuance or renewals of Letters of Credit under the 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 Credit Facility. The amount of Letters of Credit that may be issued is limited to the lesser 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 at December 31, 2021, the Company had repaid $73.6 million and had a total of $115.8 million of Letters of Credit outstanding. Certain amounts outstanding under the Letter of Credit Facility (“LC Facility”) are guaranteed by Export Development Canada under its Account Performance Security Guarantee Program. As at December 31, 2021, the Company had $55.3 million of Letters of Credit outstanding and Letter of Credit capacity of $2.7 million available under the LC Facility. Just Energy’s obligations under the Credit Facility are supported by guarantees of certain subsidiaries and affiliates and secured by a general security agreement and a pledge of the assets and securities of Just Energy and the majority of its operating subsidiaries and affiliates excluding, primarily Filter Group. 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. 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 December 31, 2021, the Canadian prime rate was 2.45% and the U.S. prime rate was 3.25%. 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. (d) As part of the recapitalization transaction that the Company completed in September 2020 (“September 2020 Recapitalization”), Just Energy issued a USD $205.9 million principal note (the “Term Loan”) maturing on March 31, 2024. The note bears interest at 10.25% . The balance at December 31, 2021 includes an accrual of $12.6 million for interest payable on the notes. As a result of the CCAA filing, the Company is in default under the Term Loan. However, any potential actions by the lenders under the Term Loan 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 Term Loan has been classified as current. (e) As part of the September 2020 Recapitalization, Just Energy issued $15 million principal amount of 7.0% subordinated notes (“Note Indenture”) to holders of the subordinated convertible debentures, which has a six-year maturity. The principal amount was reduced through a tender offer for no consideration on October 19, 2020 to $13.2 million. The Note Indenture bears an annual interest rate of 7.0% payable in kind. The balance at December 31, 2021 includes an accrual of $0.4 million for interest payable on the notes. As a result of the CCAA filing, the Company is in default under the Note Indenture’s Trust Indenture agreement. However, any potential actions by the lenders under the Note Indenture 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 Note Indenture has been classified as current. (f) As part of the September 2020 Recapitalization, the 8.75% loan was exchanged for its pro-rata share of the Term Loan and 786,982 common shares. At the time of the September 2020 Recapitalization, the 8.75% loan had USD $207.0 million outstanding plus accrued interest. (g) As part of the September 2020 Recapitalization, the 6.75% $100 M convertible debentures were exchanged for 3,592,069 common shares along with its pro-rata share of the Note Indenture and the payment of accrued interest. (h) As part of the September 2020 Recapitalization, the 6.75% $160 M convertible debentures were exchanged for 5,747,310 common shares along with its pro-rata share of the Note Indenture and the payment of accrued interest. (i) As part of the September 2020 Recapitalization, the 6.5% convertible bonds were exchanged for its pro-rata share of the Term Loan and 35,737 common shares. At the time of the September 2020 Recapitalization, $9.2 million of the 6.5% convertible bonds were outstanding plus accrued interest . |
REPORTABLE BUSINESS SEGMENTS
REPORTABLE BUSINESS SEGMENTS | 9 Months Ended |
Dec. 31, 2021 | |
REPORTABLE BUSINESS SEGMENTS | |
REPORTABLE BUSINESS SEGMENTS | 10. REPORTABLE BUSINESS SEGMENTS Just Energy’s reportable segments are the Mass Market and the Commercial segments. 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 such as Human Resources, Finance and Information Technology. For the three months ended December 31, 2021: Corporate and Mass Market Commercial shared services Consolidated Sales $ 350,061 $ 300,630 $ – $ 650,691 Cost of goods sold 171,487 262,774 – 434,261 Gross margin 178,574 37,856 – 216,430 Depreciation and amortization 9,592 1,080 – 10,672 Administrative expenses 10,206 3,624 18,643 32,473 Selling and marketing expenses 29,578 13,992 – 43,570 Other operating expenses (income) 9,782 (498) – 9,284 Segment profit (loss) $ 119,416 $ 19,658 $ (18,643) $ 120,431 Finance costs (14,271) Unrealized loss on derivative instruments and other (274,841) Realized gain on derivative instruments 78,575 Other income, net 154 Loss on investment (10,273) Reorganization costs (40,984) Recovery of income taxes 1,978 Loss for the period $ (139,231) For the three months ended December 31, 2020: Corporate and Mass Market Commercial shared services Consolidated Sales $ 342,092 $ 284,924 $ – $ 627,016 Cost of goods sold 215,702 230,869 – 446,571 Gross margin 126,390 54,055 – 180,445 Depreciation and amortization 4,470 876 – 5,346 Administrative expenses 8,561 3,458 18,389 30,408 Selling and marketing expenses 25,538 16,731 – 42,269 Other operating expenses 3,699 1,194 – 4,893 Segment profit (loss) $ 84,122 $ 31,796 $ (18,389) $ 97,529 Finance costs (17,677) Gain on September 2020 Recapitalization transaction, net 1,026 Unrealized loss on derivative instruments and other (71,558) Realized loss on derivative instruments (56,905) Other expense, net (1,431) Provision for income taxes (3,311) Loss from continuing operations $ (52,327) Profit from discontinued operations 4,788 Loss for the period (47,539) For the nine months ended December 31, 2021: Corporate and Mass Market Commercial shared services Consolidated Sales $ 1,066,539 $ 897,593 $ – $ 1,964,132 Cost of goods sold 766,308 819,613 – 1,585,921 Gross margin 300,231 77,980 – 378,211 Depreciation and amortization 17,113 2,715 – 19,828 Administrative expenses 29,707 10,724 58,993 99,424 Selling and marketing expenses 83,877 44,152 – 128,029 Other operating expenses 20,815 606 – 21,421 Segment profit (loss) for the period $ 148,719 $ 19,783 $ (58,993) $ 109,509 Finance costs (39,079) Unrealized gain on derivative instruments and other 304,811 Realized gain on derivative instruments 144,921 Other expense, net (392) Gain on investment 18,727 Reorganization costs (79,570) Recovery of income taxes 3,190 Profit for the period $ 462,117 Capital expenditures $ 7,893 $ 902 $ – $ 8,795 As at December 31, 2021 Total goodwill $ 163,954 $ – $ – $ 163,954 For the nine months ended December 31, 2020: Corporate and Mass Market Commercial shared services Consolidated Sales $ 1,152,095 $ 898,878 $ – $ 2,050,973 Cost of goods sold 685,859 694,821 – 1,380,680 Gross margin 466,236 204,057 – 670,293 Depreciation and amortization 15,608 2,690 – 18,298 Administrative expenses 26,747 12,894 72,866 112,507 Selling and marketing expenses 82,760 54,380 – 137,140 Other operating expenses 24,767 7,850 – 32,617 Segment profit (loss) $ 316,354 $ 126,243 $ (72,866) $ 369,731 Finance costs (69,274) Restructuring costs (7,118) Gain on September 2020 Recapitalization transaction, net 51,367 Unrealized loss on derivative instruments and other (79,177) Realized loss on derivative instruments (276,808) Other expense, net (4,488) Provision for income taxes (4,618) Loss from continuing operations $ (20,385) Profit from discontinued operations 630 Loss for the period (19,755) Capital expenditures $ 7,163 $ 809 $ – $ 7,972 As at December 31, 2020 Total goodwill $ 167,997 $ 96,654 $ – $ 264,651 Sales from external customers Sales based on the location of the customer are summarized as follows: Three months ended December 31, Nine months ended December 31, 2021 2020 2021 2020 Canada $ 160,953 $ 125,029 $ 429,519 $ 336,355 United States 489,738 501,987 1,534,613 1,714,618 Total $ 650,691 $ 627,016 $ 1,964,132 $ 2,050,973 Non-current assets Non-current assets by geographic segment consist of goodwill, property and equipment and intangible assets and are summarized as follows: As at December 31, 2021 As at March 31, 2021 Canada $ 173,558 $ 178,802 United States 67,102 73,518 Total $ 240,660 $ 252,320 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES | |
INCOME TAXES | 11. INCOME TAXES Three months ended December 31, Nine months ended December 31, 2021 2020 2021 2020 Current income tax expense (recovery) $ (2,159) $ 3,311 $ (3,516) $ 4,676 Deferred income tax expense (recovery) 181 – 326 (58) Provision for (recovery of) income taxes $ (1,978) $ 3,311 $ (3,190) $ 4,618 |
SHAREHOLDERS CAPITAL
SHAREHOLDERS CAPITAL | 9 Months Ended |
Dec. 31, 2021 | |
SHAREHOLDERS' CAPITAL. | |
SHAREHOLDERS' CAPITAL | 12. SHAREHOLDERS’ CAPITAL Just Energy is authorized to issue an unlimited number of common shares with no par value and up to 50,000,000 preferred shares. The common shares outstanding have no preferences, rights or restrictions attached to them and there are no preferred shares outstanding. Details of issued and outstanding shareholders’ capital are as follows: Nine months ended Year ended December 31, 2021 March 31, 2021 Shares Amount Shares Amount Common shares: Issued and outstanding Balance, beginning of period 48,078,637 $ 1,537,863 4,594,371 $ 1,099,864 Share-based awards exercised – – 91,854 929 Issuance of shares due to September 2020 Recapitalization – – 43,392,412 438,642 Issuance cost – – – (1,572) Balance, end of period 48,078,637 $ 1,537,863 48,078,637 $ 1,537,863 Preferred shares: Issued and outstanding Balance, beginning of period – $ – 4,662,165 $ 146,965 Exchanged to common shares – – (4,662,165) (146,965) Balance, end of period – $ – – $ – Shareholders' capital 48,078,637 $ 1,537,863 48,078,637 $ 1,537,863 The above table reflects the impacts of the September 2020 Recapitalization including the extinguished convertible , the settlement of the preferred shares and the issuance of new common shares. The common shares have been adjusted retrospectively to reflect the 33:1 share consolidation as part of the September 2020 Recapitalization. |
OTHER EXPENSES
OTHER EXPENSES | 9 Months Ended |
Dec. 31, 2021 | |
OTHER EXPENSES | |
OTHER EXPENSES | 13. OTHER EXPENSES (a) Other operating expenses Three months ended December 31, Nine months ended December 31, 2021 2020 2021 2020 Amortization of intangible assets $ 7,625 $ 3,840 $ 14,999 $ 12,458 Depreciation of property and equipment 3,047 1,506 4,829 5,840 Bad debt expense 8,866 3,358 19,976 26,960 Share-based compensation 418 1,535 1,445 5,657 $ 19,956 $ 10,239 $ 41,249 $ 50,915 (b) Employee expenses Three months ended December 31, Nine months ended December 31, 2021 2020 2021 2020 Wages, salaries and commissions $ 20,273 $ 12,587 $ 60,802 $ 46,305 Benefits 6,023 7,571 19,560 21,588 $ 26,296 $ 20,158 $ 80,362 $ 67,893 Employee expenses of $16.6 million and $9.7 million are included in administrative expense and selling and marketing expenses, respectively, for the three months ended December 31, 2021, compared to $12.2 million and $8.0 million, respectively, for the three months ended December 31, 2020. Employee expenses of $50.9 million and $29.5 million are included in administrative expense and selling and marketing expenses, respectively, for the nine months ended December 31, 2021, compared to $44.7 million and $23.2 million, respectively, for the nine months ended December 31, 2020. |
REORGANIZATION COSTS
REORGANIZATION COSTS | 9 Months Ended |
Dec. 31, 2021 | |
REORGANIZATION COSTS | |
REORGANIZATION COSTS | 14. REORGANIZATION COSTS Reorganization costs represent the amounts incurred related to the filings under the CCAA Proceedings and consist of: Three months ended Nine months ended December 31, 2021 December 31, 2021 Professional and advisory costs $ 13,869 $ 37,212 Key employee retention plan 1,938 7,174 Prepetition claims and other costs 25,177 35,184 $ 40,984 $ 79,570 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Dec. 31, 2021 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 15. EARNINGS PER SHARE Three months ended December 31, Nine months ended December 31, 2021 2020 2021 2020 BASIC EARNINGS (LOSS) PER SHARE Profit (loss) from continuing operations available to shareholders $ (139,231) $ (52,327) $ 462,117 $ (20,385) Profit (loss) for the period available to shareholders $ (139,231) $ (47,539) $ 462,117 $ (19,755) Basic weighted average shares outstanding 48,078,637 48,043,495 48,078,637 26,355,407 Basic earnings (loss) per share from continuing operations available to shareholders (2.90) (1.09) $ 9.61 $ (0.77) Basic earnings (loss) per share available to shareholders $ (2.90) $ (0.99) $ 9.61 $ (0.75) DILUTED EARNINGS (LOSS) PER SHARE Profit (loss) from continuing operations available to shareholders $ (139,231) $ (52,327) $ 462,117 $ (20,385) Adjusted profit (loss) for the period available to shareholders $ (139,231) $ (47,539) $ 462,117 $ (19,755) Basic weighted average shares outstanding 48,078,637 48,043,495 48,078,637 26,355,407 Dilutive effect of: Restricted share grants — 3,253 — 44,370 Deferred share grants — 187 — 4,296 Restricted share units — 17,053 — 5,643 Deferred share units 190,983 164,579 190,983 55,059 Options 650,000 572,283 650,000 192,153 Shares outstanding on a diluted basis 48,919,620 48,800,850 48,919,620 26,656,928 Diluted earnings (loss) from continuing operations per share available to shareholders (2.90) (1.09) $ 9.45 $ (0.77) Diluted earnings (loss) per share available to shareholders $ (2.90) $ (0.99) $ 9.45 $ (0.75) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Dec. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 16. COMMITMENTS AND CONTINGENCIES Commitments for each of the next five years and thereafter are as follows: As at December 31, 2021 Less than 1 year 1–3 years 4–5 years More than 5 years Total Gas, electricity and non-commodity contracts $ 525,713 $ 2,082,448 $ 388,541 $ 92,936 $ 3,089,638 (a) Surety bonds and letters of credit Pursuant to separate arrangements with several bond agencies, Just Energy has issued surety bonds to various counterparties including states, regulatory bodies, utilities and various other surety bond holders in return for a fee and/or meeting certain collateral posting requirements. Such surety bond postings are required in order to operate in certain states or markets. Total surety bonds issued as at December 31, 2021 amounted to $51.2 million (March 31, 2021 – $46.3 million) and are backed by letters of credit or cash collateral. As at December 31, 2021, Just Energy had total letters of credit outstanding in the amount of $171.1 million (March 31, 2021 – $99.4 million) (Note 9(c)). (b) Legal proceedings Just Energy and its 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 the Court Order under the CCAA and similar protection under Chapter 15 of the Bankruptcy Code in the United States in connection with the Weather Event. On September 15, 2021, the Ontario Court approved the Company’s request to establish a claims process to identify and determine claims against the Company and its subsidiaries that are subject to the ongoing CCAA Proceedings (the “Claims Procedure Order”). As part of the CCAA Proceedings and in accordance with the Claims Procedure Order, Just Energy continues to review and determine which claims will be allowed, modified or disallowed, which may result in additional liabilities subject to compromise that are not currently reflected in the Interim Condensed Financial Statements. Currently, the total claims filed against Just Energy and its subsidiaries pursuant to the Claims Procedure Order are in excess of $12 billion, including approximately $1 billion in secured claims, which include letters of credit. The previously disclosed class action against Just Energy, Just Energy Corp. and Just Energy Ontario L.P. with Haidar Omarali as plaintiff, and certain other class action claims, are subject to the Claims Procedure Order. Just Energy expects that the final amount of accepted unsecured claims will be much lower than the face amount of the filed 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 Court, 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 if they proceed. On November 12, 2021, Just Energy, along with its affiliates Just Energy Texas LP, Fulcrum Retail Energy LLC, and Hudson Energy Services LLC (the “Just Energy Parties”), initiated a lawsuit (the “Lawsuit”) against ERCOT and the PUCT in the United States Bankruptcy Court for the Southern District of Texas (the “Texas Bankruptcy Court”). The Lawsuit seeks to recover payments that were made by the Just Energy Parties to ERCOT for certain invoices relating to the Weather Event. On February 2, 2022, the Texas Bankruptcy Court dismissed the Lawsuit against the PUCT and two of the Just Energy Parties’ five claims against ERCOT. The Texas Bankruptcy Court requested that the Just Energy Parties amend their pleadings for two of the claims against ERCOT. Just Energy intends to amend the pleadings as requested and continue the Lawsuit against ERCOT. The remaining claim against ERCOT may be dismissed or abated by the Texas Bankruptcy Court. |
ORGANIZATION (Tables)
ORGANIZATION (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
ORGANIZATION | |
Summary of obligations that are subject to compromise | Amounts in 000's Trade and other payables $ 585,674 Current portion of long-term debt 464,023 Total liabilities subject to compromise $ 1,049,697 |
TRADE AND OTHER RECEIVABLES, _2
TRADE AND OTHER RECEIVABLES, NET (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
TRADE AND OTHER RECEIVABLES, NET | |
Schedule of the components of trade and other receivables | As at As at December 31, 2021 March 31, 2021 Trade account receivables, net $ 157,781 $ 189,250 Unbilled revenue, net 121,751 103,986 Receivable from ERCOT against HB 4492 187,001 – Accrued gas receivable – 833 Other 82,532 46,132 $ 549,065 $ 340,201 |
Schedule of aging of the trade accounts receivable | As at As at December 31, 2021 March 31, 2021 Current $ 70,316 $ 58,737 1–30 days 13,591 19,415 31–60 days 3,619 3,794 61–90 days 4,665 2,144 Over 90 days 12,840 10,446 $ 105,031 $ 94,536 |
Schedule of changes in the allowance for doubtful accounts | As at As at December 31, 2021 March 31, 2021 Balance, beginning of period $ 23,363 $ 45,832 Provision for doubtful accounts 19,976 34,260 Bad debts written off (28,697) (62,529) Foreign exchange 5,972 5,800 Balance, end of period $ 20,614 $ 23,363 |
OTHER CURRENT AND NON-CURRENT_2
OTHER CURRENT AND NON-CURRENT ASSETS (Tables) | 9 Months Ended |
Dec. 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 December 31, 2021 March 31, 2021 Prepaid expenses and deposits $ 67,744 $ 52,216 Customer acquisition costs 39,806 45,681 Green certificates assets 66,339 61,467 Gas delivered in excess of consumption 8,215 650 Inventory 1,600 3,391 $ 183,704 $ 163,405 As at As at (b) Other non-current assets December 31, 2021 March 31, 2021 Customer acquisition costs $ 36,250 $ 27,318 Other long-term assets 9,827 7,944 $ 46,077 $ 35,262 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
FINANCIAL INSTRUMENTS | |
Schedule of unrealized gain (loss) of derivative instruments and other | Three months ended December 31, Nine months ended December 31, 2021 2020 2021 2020 Physical forward contracts and options (i) $ (165,771) $ (58,098) $ 193,357 $ (124,865) Financial swap contracts and options (ii) (107,630) (19,349) 113,857 51,316 Foreign exchange forward contracts (238) (6,060) 1,464 (15,139) Unrealized foreign exchange on certain debts (115) 13,649 (2,360) 13,649 Weather derivatives (iii) – (547) (1,896) (1,159) Other derivative options (1,087) (1,153) 389 (2,979) Unrealized gain (loss) of derivative instruments and other $ (274,841) $ (71,558) $ 304,811 $ (79,177) |
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) $ 133,348 $ 51,453 $ 10,315 $ 21,428 Financial swap contracts and options (ii) 73,576 45,017 1,116 3,106 Foreign exchange forward contracts 1,319 – – 128 Other derivative options 1,525 492 19 2 As at December 31, 2021 $ 209,768 $ 96,962 $ 11,450 $ 24,664 Financial Financial Financial Financial assets assets liabilities liabilities (current) (non-current) (current) (non-current) Physical forward contracts and options (i) $ 12,513 $ 6,713 $ 10,157 $ 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 3,660 1,253 – – As at March 31, 2021 $ 25,026 $ 10,600 $ 13,977 $ 61,169 |
Schedule of classification of derivative financial assets (liabilities) in the fair value hierarchy | Level 1 Level 2 Level 3 Total Derivative financial assets $ – $ 47,912 $ 258,818 $ 306,730 Derivative financial liabilities – – (36,114) (36,114) Total net derivative financial assets $ – $ 47,912 $ 222,704 $ 270,616 Level 1 |
Schedule of changes in net fair value of financial assets (liabilities) | Nine months ended Year ended December 31, 2021 March 31, 2021 Balance, beginning of period $ (40,202) $ (85,885) Total gains (losses) 224,170 (2,900) Purchases 49,715 (4,059) Sales (170) (1,670) Settlements (10,809) 54,312 Balance, end of period $ 222,704 $ (40,202) |
TRADE AND OTHER PAYABLES (Table
TRADE AND OTHER PAYABLES (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
TRADE AND OTHER PAYABLES | |
Schedule of detailed information about trade and other payables | As at As at December 31, 2021 March 31, 2021 Commodity suppliers' accruals and payables (a) $ 787,410 $ 712,144 Green provisions and repurchase obligations 72,597 77,882 Sales tax payable 11,043 27,684 Non-commodity trade accruals and accounts payable (b) 91,422 80,573 Current portion of payable to former joint venture partner (c) 25,758 11,467 Accrued gas payable – 544 Other payables 5,391 11,301 $ 993,621 $ 921,595 (a) Includes $529.9 million (March 31, 2021 – $514.7 million) that is subject to compromise depending on the outcome of the CCAA Proceedings. (b) Includes $30.0 million (March 31, 2021 – $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. |
LONG-TERM DEBT AND FINANCING (T
LONG-TERM DEBT AND FINANCING (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
LONG-TERM DEBT AND FINANCING | |
Schedule of detailed information about borrowings | As at As at December 31, 2021 March 31, 2021 DIP Facility (a) $ 158,475 $ 126,735 Less: Debt issue costs (a) (1,297) (6,312) Filter Group financing (b) 2,395 4,617 Credit Facility - subject to compromise (c) 159,977 227,189 Term Loan - subject to compromise (d) 290,493 289,904 Note Indenture - subject to compromise (e) 13,553 13,607 623,596 655,740 Less: Current portion (623,385) (654,180) $ 211 $ 1,560 |
Schedule of future annual minimum principal repayments | Less than More than 1 year 1–3 years 4–5 years 5 years Total DIP Facility (a) $ 158,475 $ – $ – $ – $ 158,475 Less: Debt issue costs (a) (1,297) – – – (1,297) Filter Group financing (b) 2,184 211 – – 2,395 Credit Facility - subject to compromise (c) 159,977 – – – 159,977 Term Loan - subject to compromise (d) 290,493 – – – 290,493 Note Indenture - subject to compromise (e) 13,553 – – – 13,553 $ 623,385 $ 211 $ – $ – $ 623,596 |
Schedule of finance costs | Three months ended December 31, Nine months ended December 31, 2021 2020 2021 2020 DIP Facility (a) $ 8,253 $ – $ 22,651 $ – Filter Group financing (b) 64 165 240 540 7.0% $13M subordinated notes (c) – 280 – 280 Credit Facility (c) 5,492 4,712 15,872 15,229 Term Loan (d) – 8,242 – 8,242 8.75% term loan (f) – – – 18,055 6.75% $100M convertible debentures (g) – – – 4,762 6.75% $160M convertible debentures (h) – – – 6,948 6.5% convertible bonds (i) – – – 536 Supplier finance and others 462 4,278 316 14,682 $ 14,271 $ 17,677 $ 39,079 $ 69,274 |
REPORTABLE BUSINESS SEGMENTS (T
REPORTABLE BUSINESS SEGMENTS (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
REPORTABLE BUSINESS SEGMENTS | |
Disclosure of operating segments | Corporate and Mass Market Commercial shared services Consolidated Sales $ 350,061 $ 300,630 $ – $ 650,691 Cost of goods sold 171,487 262,774 – 434,261 Gross margin 178,574 37,856 – 216,430 Depreciation and amortization 9,592 1,080 – 10,672 Administrative expenses 10,206 3,624 18,643 32,473 Selling and marketing expenses 29,578 13,992 – 43,570 Other operating expenses (income) 9,782 (498) – 9,284 Segment profit (loss) $ 119,416 $ 19,658 $ (18,643) $ 120,431 Finance costs (14,271) Unrealized loss on derivative instruments and other (274,841) Realized gain on derivative instruments 78,575 Other income, net 154 Loss on investment (10,273) Reorganization costs (40,984) Recovery of income taxes 1,978 Loss for the period $ (139,231) Corporate and Mass Market Commercial shared services Consolidated Sales $ 342,092 $ 284,924 $ – $ 627,016 Cost of goods sold 215,702 230,869 – 446,571 Gross margin 126,390 54,055 – 180,445 Depreciation and amortization 4,470 876 – 5,346 Administrative expenses 8,561 3,458 18,389 30,408 Selling and marketing expenses 25,538 16,731 – 42,269 Other operating expenses 3,699 1,194 – 4,893 Segment profit (loss) $ 84,122 $ 31,796 $ (18,389) $ 97,529 Finance costs (17,677) Gain on September 2020 Recapitalization transaction, net 1,026 Unrealized loss on derivative instruments and other (71,558) Realized loss on derivative instruments (56,905) Other expense, net (1,431) Provision for income taxes (3,311) Loss from continuing operations $ (52,327) Profit from discontinued operations 4,788 Loss for the period (47,539) Corporate and Mass Market Commercial shared services Consolidated Sales $ 1,066,539 $ 897,593 $ – $ 1,964,132 Cost of goods sold 766,308 819,613 – 1,585,921 Gross margin 300,231 77,980 – 378,211 Depreciation and amortization 17,113 2,715 – 19,828 Administrative expenses 29,707 10,724 58,993 99,424 Selling and marketing expenses 83,877 44,152 – 128,029 Other operating expenses 20,815 606 – 21,421 Segment profit (loss) for the period $ 148,719 $ 19,783 $ (58,993) $ 109,509 Finance costs (39,079) Unrealized gain on derivative instruments and other 304,811 Realized gain on derivative instruments 144,921 Other expense, net (392) Gain on investment 18,727 Reorganization costs (79,570) Recovery of income taxes 3,190 Profit for the period $ 462,117 Capital expenditures $ 7,893 $ 902 $ – $ 8,795 As at December 31, 2021 Total goodwill $ 163,954 $ – $ – $ 163,954 Corporate and Mass Market Commercial shared services Consolidated Sales $ 1,152,095 $ 898,878 $ – $ 2,050,973 Cost of goods sold 685,859 694,821 – 1,380,680 Gross margin 466,236 204,057 – 670,293 Depreciation and amortization 15,608 2,690 – 18,298 Administrative expenses 26,747 12,894 72,866 112,507 Selling and marketing expenses 82,760 54,380 – 137,140 Other operating expenses 24,767 7,850 – 32,617 Segment profit (loss) $ 316,354 $ 126,243 $ (72,866) $ 369,731 Finance costs (69,274) Restructuring costs (7,118) Gain on September 2020 Recapitalization transaction, net 51,367 Unrealized loss on derivative instruments and other (79,177) Realized loss on derivative instruments (276,808) Other expense, net (4,488) Provision for income taxes (4,618) Loss from continuing operations $ (20,385) Profit from discontinued operations 630 Loss for the period (19,755) Capital expenditures $ 7,163 $ 809 $ – $ 7,972 As at December 31, 2020 Total goodwill $ 167,997 $ 96,654 $ – $ 264,651 |
Disclosure of geographical areas | Three months ended December 31, Nine months ended December 31, 2021 2020 2021 2020 Canada $ 160,953 $ 125,029 $ 429,519 $ 336,355 United States 489,738 501,987 1,534,613 1,714,618 Total $ 650,691 $ 627,016 $ 1,964,132 $ 2,050,973 As at December 31, 2021 As at March 31, 2021 Canada $ 173,558 $ 178,802 United States 67,102 73,518 Total $ 240,660 $ 252,320 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES | |
Disclosure of income tax, deferred tax movements | Three months ended December 31, Nine months ended December 31, 2021 2020 2021 2020 Current income tax expense (recovery) $ (2,159) $ 3,311 $ (3,516) $ 4,676 Deferred income tax expense (recovery) 181 – 326 (58) Provision for (recovery of) income taxes $ (1,978) $ 3,311 $ (3,190) $ 4,618 |
SHAREHOLDERS CAPITAL (Tables)
SHAREHOLDERS CAPITAL (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
SHAREHOLDERS' CAPITAL. | |
Schedule of issued and outstanding shareholders' capital | Nine months ended Year ended December 31, 2021 March 31, 2021 Shares Amount Shares Amount Common shares: Issued and outstanding Balance, beginning of period 48,078,637 $ 1,537,863 4,594,371 $ 1,099,864 Share-based awards exercised – – 91,854 929 Issuance of shares due to September 2020 Recapitalization – – 43,392,412 438,642 Issuance cost – – – (1,572) Balance, end of period 48,078,637 $ 1,537,863 48,078,637 $ 1,537,863 Preferred shares: Issued and outstanding Balance, beginning of period – $ – 4,662,165 $ 146,965 Exchanged to common shares – – (4,662,165) (146,965) Balance, end of period – $ – – $ – Shareholders' capital 48,078,637 $ 1,537,863 48,078,637 $ 1,537,863 |
OTHER EXPENSES (Tables)
OTHER EXPENSES (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
OTHER EXPENSES | |
Schedule of other operating expenses | Three months ended December 31, Nine months ended December 31, 2021 2020 2021 2020 Amortization of intangible assets $ 7,625 $ 3,840 $ 14,999 $ 12,458 Depreciation of property and equipment 3,047 1,506 4,829 5,840 Bad debt expense 8,866 3,358 19,976 26,960 Share-based compensation 418 1,535 1,445 5,657 $ 19,956 $ 10,239 $ 41,249 $ 50,915 |
Schedule of employee expenses | Three months ended December 31, Nine months ended December 31, 2021 2020 2021 2020 Wages, salaries and commissions $ 20,273 $ 12,587 $ 60,802 $ 46,305 Benefits 6,023 7,571 19,560 21,588 $ 26,296 $ 20,158 $ 80,362 $ 67,893 |
REORGANIZATION COSTS (Tables)
REORGANIZATION COSTS (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
REORGANIZATION COSTS | |
Schedule of reorganization costs | Three months ended Nine months ended December 31, 2021 December 31, 2021 Professional and advisory costs $ 13,869 $ 37,212 Key employee retention plan 1,938 7,174 Prepetition claims and other costs 25,177 35,184 $ 40,984 $ 79,570 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
EARNINGS PER SHARE | |
Schedule of earnings (loss) per share | Three months ended December 31, Nine months ended December 31, 2021 2020 2021 2020 BASIC EARNINGS (LOSS) PER SHARE Profit (loss) from continuing operations available to shareholders $ (139,231) $ (52,327) $ 462,117 $ (20,385) Profit (loss) for the period available to shareholders $ (139,231) $ (47,539) $ 462,117 $ (19,755) Basic weighted average shares outstanding 48,078,637 48,043,495 48,078,637 26,355,407 Basic earnings (loss) per share from continuing operations available to shareholders (2.90) (1.09) $ 9.61 $ (0.77) Basic earnings (loss) per share available to shareholders $ (2.90) $ (0.99) $ 9.61 $ (0.75) DILUTED EARNINGS (LOSS) PER SHARE Profit (loss) from continuing operations available to shareholders $ (139,231) $ (52,327) $ 462,117 $ (20,385) Adjusted profit (loss) for the period available to shareholders $ (139,231) $ (47,539) $ 462,117 $ (19,755) Basic weighted average shares outstanding 48,078,637 48,043,495 48,078,637 26,355,407 Dilutive effect of: Restricted share grants — 3,253 — 44,370 Deferred share grants — 187 — 4,296 Restricted share units — 17,053 — 5,643 Deferred share units 190,983 164,579 190,983 55,059 Options 650,000 572,283 650,000 192,153 Shares outstanding on a diluted basis 48,919,620 48,800,850 48,919,620 26,656,928 Diluted earnings (loss) from continuing operations per share available to shareholders (2.90) (1.09) $ 9.45 $ (0.77) Diluted earnings (loss) per share available to shareholders $ (2.90) $ (0.99) $ 9.45 $ (0.75) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of Commitments | Less than 1 year 1–3 years 4–5 years More than 5 years Total Gas, electricity and non-commodity contracts $ 525,713 $ 2,082,448 $ 388,541 $ 92,936 $ 3,089,638 |
ORGANIZATION (Details)
ORGANIZATION (Details) $ in Thousands, $ in Millions | 9 Months Ended | ||
Dec. 31, 2021CAD ($) | Mar. 31, 2021CAD ($) | Mar. 09, 2021USD ($) | |
Disclosure of detailed information about borrowings [line items] | |||
Description of nature and extent of rate-regulated activity | ancillary service charges above USD $9,000/MWh | ||
Subject to compromise | |||
Trade and other current payables | $ 993,621 | $ 921,595 | |
Current portion of long-term debt | 623,385 | 654,180 | |
Liabilities | 1,669,214 | $ 1,686,628 | |
DIP Facility | |||
Disclosure of detailed information about borrowings [line items] | |||
Face value | $ 125 | ||
Interest rate | 13.00% | ||
Subject to compromise | |||
Trade and other current payables | 585,674 | ||
Current portion of long-term debt | 464,023 | ||
Liabilities | $ 1,049,697 |
OPERATIONS (Details)
OPERATIONS (Details) | 9 Months Ended |
Dec. 31, 2021 | |
Fixed-price or price protected | |
Operations: | |
Term in contract with customer | P5Y |
TRADE AND OTHER RECEIVABLES, _3
TRADE AND OTHER RECEIVABLES, NET (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Mar. 31, 2021 |
TRADE AND OTHER RECEIVABLES, NET | ||
Trade accounts receivable, net | $ 157,781 | $ 189,250 |
Unbilled revenue, net | 121,751 | 103,986 |
Receivable from ERCOT against HB 4492 | 187,001 | |
Accrued gas receivable | 833 | |
Other | 82,532 | 46,132 |
Trade and other current receivables | $ 549,065 | $ 340,201 |
TRADE AND OTHER RECEIVABLES, _4
TRADE AND OTHER RECEIVABLES, NET - Aging (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Mar. 31, 2021 |
Aging of trade receivable: | ||
Trade and other current receivables | $ 549,065 | $ 340,201 |
Unbilled revenue, net | 121,751 | 103,986 |
Credit risk | ||
Aging of trade receivable: | ||
Trade and other current receivables | 105,031 | 94,536 |
Unbilled revenue, net | 102,600 | 87,100 |
Credit risk | Current | ||
Aging of trade receivable: | ||
Trade and other current receivables | 70,316 | 58,737 |
Credit risk | 1-30 days | ||
Aging of trade receivable: | ||
Trade and other current receivables | 13,591 | 19,415 |
Credit risk | 31-60 days | ||
Aging of trade receivable: | ||
Trade and other current receivables | 3,619 | 3,794 |
Credit risk | 61-90 days | ||
Aging of trade receivable: | ||
Trade and other current receivables | 4,665 | 2,144 |
Credit risk | Over 90 days | ||
Aging of trade receivable: | ||
Trade and other current receivables | $ 12,840 | $ 10,446 |
TRADE AND OTHER RECEIVABLES, _5
TRADE AND OTHER RECEIVABLES, NET - Allowance (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
TRADE AND OTHER RECEIVABLES, NET | |||||
Balance, beginning of period | $ 23,363 | $ 45,832 | $ 45,832 | ||
Provision for doubtful accounts | $ 8,866 | $ 3,358 | 19,976 | $ 26,960 | 34,260 |
Bad debts written off | (28,697) | (62,529) | |||
Foreign exchange | 5,972 | 5,800 | |||
Balance, end of period | $ 20,614 | $ 20,614 | $ 23,363 |
OTHER CURRENT AND NON-CURRENT_3
OTHER CURRENT AND NON-CURRENT ASSETS - Current (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Mar. 31, 2021 |
OTHER CURRENT AND NON-CURRENT ASSETS | ||
Prepaid expenses and deposits | $ 67,744 | $ 52,216 |
Customer acquisition costs | 39,806 | 45,681 |
Green certificates assets | 66,339 | 61,467 |
Gas delivered in excess of consumption | 8,215 | 650 |
Inventory | 1,600 | 3,391 |
Other current assets | $ 183,704 | $ 163,405 |
OTHER CURRENT AND NON-CURRENT_4
OTHER CURRENT AND NON-CURRENT ASSETS - Noncurrent (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Mar. 31, 2021 |
OTHER CURRENT AND NON-CURRENT ASSETS | ||
Customer acquisition costs | $ 36,250 | $ 27,318 |
Other long-term assets | 9,827 | 7,944 |
Other non-current assets | $ 46,077 | $ 35,262 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - Classified as fair value through profit or loss - Classified as fair value - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial Instruments: | ||||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | $ (274,841) | $ (71,558) | $ 304,811 | $ (79,177) |
Physical forward contracts and options | ||||
Financial Instruments: | ||||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | (165,771) | (58,098) | 193,357 | (124,865) |
Financial swap contracts and options | ||||
Financial Instruments: | ||||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | (107,630) | (19,349) | 113,857 | 51,316 |
Foreign exchange forward contracts | ||||
Financial Instruments: | ||||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | (238) | (6,060) | 1,464 | (15,139) |
Unrealized foreign exchange on Term Loan | ||||
Financial Instruments: | ||||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | (115) | 13,649 | (2,360) | 13,649 |
Weather derivatives | ||||
Financial Instruments: | ||||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | (547) | (1,896) | (1,159) | |
Other derivative options | ||||
Financial Instruments: | ||||
Unrealized gain (loss), including fx, classified as fair value through profit or loss | $ (1,087) | $ (1,153) | $ 389 | $ (2,979) |
FINANCIAL INSTRUMENTS - Derivat
FINANCIAL INSTRUMENTS - Derivatives (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Mar. 31, 2021 |
Financial Instruments: | ||
Financial assets, current | $ 209,768 | $ 25,026 |
Financial assets, non-current | 96,962 | 10,600 |
Financial liabilities, current | 11,450 | 13,977 |
Fair value of derivative financial liabilities | 24,664 | 61,169 |
Classified as fair value | ||
Financial Instruments: | ||
Financial assets, current | 209,768 | 25,026 |
Financial assets, non-current | 96,962 | 10,600 |
Financial liabilities, current | 11,450 | 13,977 |
Fair value of derivative financial liabilities | 24,664 | 61,169 |
Classified as fair value | Physical forward contracts and options | ||
Financial Instruments: | ||
Financial assets, current | 133,348 | 12,513 |
Financial assets, non-current | 51,453 | 6,713 |
Financial liabilities, current | 10,315 | 10,157 |
Fair value of derivative financial liabilities | 21,428 | 56,122 |
Classified as fair value | Financial swap contracts and options | ||
Financial Instruments: | ||
Financial assets, current | 73,576 | 6,942 |
Financial assets, non-current | 45,017 | 2,634 |
Financial liabilities, current | 1,116 | 3,548 |
Fair value of derivative financial liabilities | 3,106 | 5,047 |
Classified as fair value | Foreign exchange forward contracts | ||
Financial Instruments: | ||
Financial assets, current | 1,319 | |
Financial liabilities, current | 272 | |
Fair value of derivative financial liabilities | 128 | |
Classified as fair value | Weather derivatives | ||
Financial Instruments: | ||
Financial assets, current | 1,911 | |
Classified as fair value | Other derivative options | ||
Financial Instruments: | ||
Financial assets, current | 1,525 | 3,660 |
Financial assets, non-current | 492 | $ 1,253 |
Financial liabilities, current | 19 | |
Fair value of derivative financial liabilities | $ 2 |
FINANCIAL INSTRUMENTS - Hedges
FINANCIAL INSTRUMENTS - Hedges (Details) | Dec. 31, 2021$ / hMWTcfUSD ($)MWht$ / J |
Heating degree days | Later than one year | Top of range | |
Hedging: | |
Nominal amount of hedging instrument | 4,871 |
Heating degree days | Later than two years and not later than three years | Bottom of range | |
Hedging: | |
Nominal amount of hedging instrument | 1,652 |
Physical forward contracts and options | Electricity | 7 - 10 years | |
Hedging: | |
Nominal amount of hedging instrument | $ | 27,135,906 |
Price of hedging instrument | 49.20 |
Physical forward contracts and options | Natural gas | 4-5 years | |
Hedging: | |
Nominal amount of hedging instrument | $ | 106,875,145 |
Price of hedging instrument | 3.87 |
Physical forward contracts and options | Renewable energy certificates | 7 - 10 years | |
Hedging: | |
Nominal amount of hedging instrument | $ / h | 3,116,650 |
Price of hedging instrument | 26.39 |
Physical forward contracts and options | Green Gas Certificates | Not later than one year | |
Hedging: | |
Nominal amount of hedging instrument | t | 10,000 |
Price of hedging instrument | 15.31 |
Physical forward contracts and options | Capacity contracts | Later than two years and not later than three years | |
Hedging: | |
Nominal amount of hedging instrument | MW | 1,628 |
Price of hedging instrument | 4,765.65 |
Physical forward contracts and options | Ancillary contract | 3-4 years | |
Hedging: | |
Nominal amount of hedging instrument | MWh | 1,133,640 |
Price of hedging instrument | $ / h | 27.25 |
Financial swap contracts and options | Later than two years and not later than three years | |
Hedging: | |
Nominal amount of hedging instrument | 1,490,328 |
Price of hedging instrument | $ | 29.49 |
Financial swap contracts and options | Electricity | 4-5 years | |
Hedging: | |
Nominal amount of hedging instrument | MWh | 16,411,986 |
Price of hedging instrument | $ / h | 52.23 |
Financial swap contracts and options | Natural gas | Later than one year | |
Hedging: | |
Nominal amount of hedging instrument | Tcf | 108,350,809 |
Price of hedging instrument | $ / J | 2.95 |
Weather derivatives | Heating degree days | Not later than one year | Bottom of range | |
Hedging: | |
Nominal amount of hedging instrument | 1,813 |
Weather derivatives | Heating degree days | Not later than one year | Top of range | |
Hedging: | |
Nominal amount of hedging instrument | 4,985 |
Weather derivatives | Heating degree days | Later than one year | Bottom of range | |
Hedging: | |
Nominal amount of hedging instrument | 1,652 |
Weather derivatives | Heating degree days | Later than two years and not later than three years | Top of range | |
Hedging: | |
Nominal amount of hedging instrument | 4,910 |
FINANCIAL INSTRUMENTS - Classif
FINANCIAL INSTRUMENTS - Classification in FV hierarchy (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Mar. 31, 2021 |
Classification of derivative financial assets (liabilities): | ||
Derivative financial assets | $ 306,730 | $ 35,626 |
Derivative financial liabilities | (36,114) | (75,146) |
Total net derivative financial assets (liabilities) | 270,616 | (39,520) |
Level 2 of fair value hierarchy | ||
Classification of derivative financial assets (liabilities): | ||
Derivative financial assets | 47,912 | 682 |
Total net derivative financial assets (liabilities) | 47,912 | 682 |
Level 3 of fair value hierarchy | ||
Classification of derivative financial assets (liabilities): | ||
Derivative financial assets | 258,818 | 34,944 |
Derivative financial liabilities | (36,114) | (75,146) |
Total net derivative financial assets (liabilities) | $ 222,704 | $ (40,202) |
FINANCIAL INSTRUMENTS - Sensiti
FINANCIAL INSTRUMENTS - Sensitivity (Details) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2021 | Mar. 31, 2021 | |
Bottom of range | |||
Disclosure of sensitivity: | |||
Basis curve | 12 months | ||
Top of range | |||
Disclosure of sensitivity: | |||
Basis curve | 15 months | ||
Level 3 of fair value hierarchy | |||
Disclosure of sensitivity: | |||
Percentage of extrapolation | 5.00% | 5.00% | |
Cash flow hedges | Not later than one year | Bottom of range | |||
Disclosure of sensitivity: | |||
Hedge (as percent of cross border cash flow) | 50.00% | ||
Cash flow hedges | Not later than one year | Top of range | |||
Disclosure of sensitivity: | |||
Hedge (as percent of cross border cash flow) | 100.00% | ||
Cash flow hedges | Later than one year and not later than two years | Bottom of range | |||
Disclosure of sensitivity: | |||
Hedge (as percent of cross border cash flow) | 0.00% | ||
Cash flow hedges | Later than one year and not later than two years | Top of range | |||
Disclosure of sensitivity: | |||
Hedge (as percent of cross border cash flow) | 50.00% | ||
Commodity price risk | |||
Disclosure of sensitivity: | |||
Increase (decrease) due to increase, liabilities, impact on profit or loss before tax | $ 252.3 | ||
Increase (decrease), due to decrease, liabilities, impact on profit or loss before tax | $ 289.3 | ||
Commodity price risk | Level 3 of fair value hierarchy | |||
Disclosure of sensitivity: | |||
Percentage of increase, liabilities | 10.00% | 10.00% | |
Increase (decrease) due to increase, liabilities, impact on profit or loss before tax | $ 260.4 | ||
Percentage of decrease, liabilities | 10.00% | 10.00% | |
Increase (decrease), due to decrease, liabilities, impact on profit or loss before tax | $ 245.8 | ||
Currency risk | |||
Disclosure of sensitivity: | |||
Percentage of increase, liabilities | 5.00% | 5.00% | |
Percentage of decrease, liabilities | 5.00% | 5.00% | |
Increase (decrease), due to decrease, recognized in profit or loss after tax | $ 49.2 | ||
Increase (decrease) due to increase, liabilities, impact on profit or loss after tax | $ 52 | ||
Increase in risk variable, impact on other comprehensive loss | $ 46.6 | ||
Decrease in risk variable, impact on other comprehensive loss | $ 49.4 | ||
Interest rate risk | |||
Disclosure of sensitivity: | |||
Percentage of increase, liabilities | 1.00% | 1.00% | |
Increase (decrease) due to increase, liabilities, impact on profit or loss before tax | $ 0.5 | ||
Percentage of decrease, liabilities | 1.00% | 1.00% | |
Increase (decrease), due to decrease, liabilities, impact on profit or loss before tax | $ 0.5 | ||
Credit risk | |||
Disclosure of sensitivity: | |||
Financial assets, at fair value | 12.9 | $ 12.9 | $ 1.1 |
Counter party credit risk | $ 229.3 | $ 229.3 | $ 35.6 |
FINANCIAL INSTRUMENTS - Reconci
FINANCIAL INSTRUMENTS - Reconciliation of Level 3 Assets (Liabilities) (Details) - Level 3 of fair value hierarchy - CAD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Mar. 31, 2021 | |
Financial Instruments: | ||
Balance, beginning of period | $ (40,202) | $ (85,885) |
Total gains (losses) | 224,170 | (2,900) |
Purchases | 49,715 | (4,059) |
Sales | (170) | (1,670) |
Settlements | (10,809) | 54,312 |
Balance, end of period | $ 222,704 | $ (40,202) |
INVESTMENTS (Details)
INVESTMENTS (Details) $ in Thousands | Dec. 03, 2021CAD ($) | Dec. 01, 2021CAD ($) | Dec. 01, 2021USD ($) | Nov. 01, 2021 | Dec. 31, 2021CAD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2021CAD ($) |
Disclosure of associates [line items] | |||||||
Gains losses on investments | $ (10,273) | $ 18,727 | |||||
Ecobee Inc | |||||||
Disclosure of associates [line items] | |||||||
Proportion of ownership interest in associate | 8.00% | ||||||
Gains on disposals of investments | $ 18,700 | ||||||
Generac Holdings Inc | |||||||
Disclosure of associates [line items] | |||||||
Consideration received | $ 51,600 | ||||||
Consideration received stock | $ 80,281 | ||||||
Contingent Consideration Paid (Received) Cash | $ 15,600 | ||||||
Contingent asset | $ 10,000 | ||||||
Proceeds from sales of shares | $ 36,000 |
TRADE AND OTHER PAYABLES (Detai
TRADE AND OTHER PAYABLES (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Mar. 31, 2021 |
Disclosure of detailed information about borrowings [line items] | ||
Commodity suppliers' accruals and payables (a) | $ 787,410 | $ 712,144 |
Green provisions and repurchase obligations | 72,597 | 77,882 |
Sales tax payable | 11,043 | 27,684 |
Non-commodity trade accruals and accounts payable (b) | 91,422 | 80,573 |
Current portion of payable to former joint venture partner (c) | 25,758 | 11,467 |
Accrued gas payable | 544 | |
Other payables | 5,391 | 11,301 |
Trade and other current payables | 993,621 | 921,595 |
DIP Facility | ||
Disclosure of detailed information about borrowings [line items] | ||
Commodity suppliers' accruals and payables (a) | 529,900 | 514,700 |
Non-commodity trade accruals and accounts payable (b) | 30,000 | $ 12,900 |
Trade and other current payables | $ 585,674 |
LONG-TERM DEBT AND FINANCING (D
LONG-TERM DEBT AND FINANCING (Details) $ in Thousands, $ in Millions | 9 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2021CAD ($) | Mar. 31, 2021CAD ($) | Sep. 30, 2021 | Mar. 09, 2021USD ($) | Dec. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019CAD ($) | ||
Borrowings: | ||||||||
Debt | $ 623,596 | $ 655,740 | ||||||
Less: Current portion | (623,385) | (654,180) | ||||||
Total non-current portion of non-current borrowings | 211 | 1,560 | ||||||
DIP Facility | ||||||||
Borrowings: | ||||||||
Debt | [1] | 158,475 | 126,735 | |||||
Less: Debt issue costs (a) | [1] | (1,297) | (6,312) | |||||
Less: Current portion | (464,023) | |||||||
Notional amount | $ 125 | |||||||
Interest rate | 13.00% | |||||||
Filter Group financing | ||||||||
Borrowings: | ||||||||
Debt | [2] | 2,395 | 4,617 | |||||
Credit Facility | ||||||||
Borrowings: | ||||||||
Debt | 159,977 | 227,189 | ||||||
7% $15M subordinated notes | ||||||||
Borrowings: | ||||||||
Debt | [3] | $ 13,553 | 13,607 | |||||
Interest rate | 7.00% | |||||||
Term Loan | ||||||||
Borrowings: | ||||||||
Debt | [4] | $ 290,493 | $ 289,904 | |||||
7.0% $13M subordinated notes | ||||||||
Borrowings: | ||||||||
Interest rate | 7.00% | |||||||
Unsecured term loan | ||||||||
Borrowings: | ||||||||
Debt | $ 207,000 | |||||||
Interest rate | 8.75% | |||||||
6.75% $100M convertible debentures | ||||||||
Borrowings: | ||||||||
Notional amount | $ 100,000 | |||||||
Interest rate | 6.75% | 6.75% | 6.75% | |||||
6.75% $160M convertible debentures | ||||||||
Borrowings: | ||||||||
Notional amount | $ 160,000 | |||||||
Interest rate | 6.75% | |||||||
6.5% convertible bonds | ||||||||
Borrowings: | ||||||||
Debt | $ 9,200 | |||||||
Interest rate | 6.50% | 6.50% | 6.50% | 6.50% | ||||
[1] | Three months ended December 31, | |||||||
[2] | Filter Group has a $2.4 million outstanding loan payable to Home Trust Company (“HTC”). The loan is a result of factoring receivables to finance the cost of rental equipment that matures no later than October 2023 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 HTC. | |||||||
[3] | As part of the September 2020 Recapitalization, Just Energy issued $15 million principal amount of 7.0% subordinated notes (“Note Indenture”) to holders of the subordinated convertible debentures, which has a six-year maturity. The principal amount was reduced through a tender offer for no consideration on October 19, 2020 to $13.2 million. The Note Indenture bears an annual interest rate of 7.0% payable in kind. The balance at December 31, 2021 includes an accrual of $0.4 million for interest payable on the notes. As a result of the CCAA filing, the Company is in default under the Note Indenture’s Trust Indenture agreement. However, any potential actions by the lenders under the Note Indenture 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 Note Indenture has been classified as current. | |||||||
[4] | As part of the recapitalization transaction that the Company completed in September 2020 (“September 2020 Recapitalization”), Just Energy issued a USD $205.9 million principal note (the “Term Loan”) maturing on March 31, 2024. The note bears interest at 10.25% . The balance at December 31, 2021 includes an accrual of $12.6 million for interest payable on the notes. As a result of the CCAA filing, the Company is in default under the Term Loan. However, any potential actions by the lenders under the Term Loan 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 Term Loan has been classified as current. |
LONG-TERM DEBT AND FINANCING -
LONG-TERM DEBT AND FINANCING - Repayments (Details) $ in Thousands | Dec. 31, 2021CAD ($) | |
Borrowings: | ||
Future annual minimum repayments | $ 623,596 | |
DIP Facility | ||
Borrowings: | ||
Future annual minimum repayments | 158,475 | [1] |
Less: Debt issue costs (a) | (1,297) | |
Filter Group financing | ||
Borrowings: | ||
Future annual minimum repayments | 2,395 | [2] |
Credit Facility | ||
Borrowings: | ||
Future annual minimum repayments | 159,977 | |
7% $15M subordinated notes | ||
Borrowings: | ||
Future annual minimum repayments | 13,553 | [3] |
Term Loan | ||
Borrowings: | ||
Future annual minimum repayments | 290,493 | [4] |
Not later than one year | ||
Borrowings: | ||
Future annual minimum repayments | 623,385 | |
Not later than one year | DIP Facility | ||
Borrowings: | ||
Future annual minimum repayments | 158,475 | [1] |
Less: Debt issue costs (a) | (1,297) | |
Not later than one year | Filter Group financing | ||
Borrowings: | ||
Future annual minimum repayments | 2,184 | [2] |
Not later than one year | Credit Facility | ||
Borrowings: | ||
Future annual minimum repayments | 159,977 | |
Not later than one year | 7% $15M subordinated notes | ||
Borrowings: | ||
Future annual minimum repayments | 13,553 | [3] |
Not later than one year | Term Loan | ||
Borrowings: | ||
Future annual minimum repayments | 290,493 | [4] |
1-3 years | ||
Borrowings: | ||
Future annual minimum repayments | 211 | |
1-3 years | Filter Group financing | ||
Borrowings: | ||
Future annual minimum repayments | $ 211 | [2] |
[1] | Three months ended December 31, | |
[2] | Filter Group has a $2.4 million outstanding loan payable to Home Trust Company (“HTC”). The loan is a result of factoring receivables to finance the cost of rental equipment that matures no later than October 2023 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 HTC. | |
[3] | As part of the September 2020 Recapitalization, Just Energy issued $15 million principal amount of 7.0% subordinated notes (“Note Indenture”) to holders of the subordinated convertible debentures, which has a six-year maturity. The principal amount was reduced through a tender offer for no consideration on October 19, 2020 to $13.2 million. The Note Indenture bears an annual interest rate of 7.0% payable in kind. The balance at December 31, 2021 includes an accrual of $0.4 million for interest payable on the notes. As a result of the CCAA filing, the Company is in default under the Note Indenture’s Trust Indenture agreement. However, any potential actions by the lenders under the Note Indenture 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 Note Indenture has been classified as current. | |
[4] | As part of the recapitalization transaction that the Company completed in September 2020 (“September 2020 Recapitalization”), Just Energy issued a USD $205.9 million principal note (the “Term Loan”) maturing on March 31, 2024. The note bears interest at 10.25% . The balance at December 31, 2021 includes an accrual of $12.6 million for interest payable on the notes. As a result of the CCAA filing, the Company is in default under the Term Loan. However, any potential actions by the lenders under the Term Loan 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 Term Loan has been classified as current. |
LONG-TERM DEBT AND FINANCING _2
LONG-TERM DEBT AND FINANCING - Finance costs (Details) $ in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | Mar. 09, 2021USD ($) | Sep. 30, 2019CAD ($) | ||
Borrowings: | |||||||
Finance costs | $ 14,271 | $ 17,677 | $ 39,079 | $ 69,274 | |||
DIP Facility | |||||||
Borrowings: | |||||||
Finance costs | 8,253 | 22,651 | |||||
Face value | $ 125 | ||||||
Filter Group financing | |||||||
Borrowings: | |||||||
Finance costs | [1] | 64 | 165 | 240 | 540 | ||
Credit Facility | |||||||
Borrowings: | |||||||
Finance costs | 5,492 | 4,712 | 15,872 | 15,229 | |||
10.25 % term loan | |||||||
Borrowings: | |||||||
Finance costs | 8,242 | 8,242 | |||||
8.75% Term Loan | |||||||
Borrowings: | |||||||
Finance costs | [2] | 18,055 | |||||
7.0% $13M subordinated notes | |||||||
Borrowings: | |||||||
Finance costs | 280 | 280 | |||||
6.75% $100M convertible debentures | |||||||
Borrowings: | |||||||
Finance costs | [3] | 4,762 | |||||
Face value | $ 100,000 | ||||||
6.75% $160M convertible debentures | |||||||
Borrowings: | |||||||
Finance costs | [4] | 6,948 | |||||
Face value | 160,000 | 160,000 | |||||
6.5% convertible bonds | |||||||
Borrowings: | |||||||
Finance costs | [5] | 536 | |||||
Supplier finance and others | |||||||
Borrowings: | |||||||
Finance costs | $ 462 | $ 4,278 | $ 316 | $ 14,682 | |||
[1] | Filter Group has a $2.4 million outstanding loan payable to Home Trust Company (“HTC”). The loan is a result of factoring receivables to finance the cost of rental equipment that matures no later than October 2023 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 HTC. | ||||||
[2] | As part of the September 2020 Recapitalization, the 8.75% loan was exchanged for its pro-rata share of the Term Loan and 786,982 common shares. At the time of the September 2020 Recapitalization, the 8.75% loan had USD $207.0 million outstanding plus accrued interest. | ||||||
[3] | As part of the September 2020 Recapitalization, the 6.75% $100 M convertible debentures were exchanged for 3,592,069 common shares along with its pro-rata share of the Note Indenture and the payment of accrued interest. | ||||||
[4] | As part of the September 2020 Recapitalization, the 6.75% $160 M convertible debentures were exchanged for 5,747,310 common shares along with its pro-rata share of the Note Indenture and the payment of accrued interest. | ||||||
[5] | As part of the September 2020 Recapitalization, the 6.5% convertible bonds were exchanged for its pro-rata share of the Term Loan and 35,737 common shares. At the time of the September 2020 Recapitalization, $9.2 million of the 6.5% convertible bonds were outstanding plus accrued interest . |
LONG-TERM DEBT AND FINANCING _3
LONG-TERM DEBT AND FINANCING - Additional information (Details) $ in Thousands, $ in Millions | Mar. 18, 2021CAD ($) | Dec. 31, 2021CAD ($)shares | Dec. 31, 2020CAD ($) | Mar. 31, 2021CAD ($) | Sep. 30, 2021 | Mar. 09, 2021USD ($) | Oct. 19, 2020CAD ($) | Sep. 30, 2020 | Sep. 30, 2019CAD ($) | |
Disclosure of detailed information about borrowings [line items] | ||||||||||
Total borrowings | $ 623,596 | $ 655,740 | ||||||||
Origination Fee Percentage | 1.00% | |||||||||
Commitment Fee Percentage | 1.00% | |||||||||
Amendment fee percentage | 1.00% | |||||||||
Repayments of long-term debt | 2,222 | $ 4,204 | ||||||||
Proceeds from borrowings | 31,425 | |||||||||
Home Trust Company [Member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Total borrowings | $ 2,400 | |||||||||
Interest rate | 8.99% | |||||||||
DIP Facility | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Notional amount | $ 125 | |||||||||
Total borrowings | [1] | $ 158,475 | 126,735 | |||||||
Interest rate | 13.00% | |||||||||
Total borrowing costs incurred | [1] | 1,297 | 6,312 | |||||||
Credit Facility | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Total borrowings | 159,977 | 227,189 | ||||||||
Borrowings, letters of credit | 55,300 | |||||||||
Available capacity under Letter of Credit | $ 2,700 | |||||||||
Credit Facility | Prime Rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Basis rate | 4.25% | |||||||||
Credit Facility | Libor | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Basis rate | 5.25% | |||||||||
Credit Facility | Canadian bank prime rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Basis rate | 2.45% | |||||||||
Credit Facility | US Prime Rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Basis rate | 3.25% | |||||||||
Lender Support Agreement [Member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Limited Amount Of Letter Of Credit | $ 46,100 | |||||||||
Repayments of long-term debt | $ 125,000 | $ 73,600 | ||||||||
Borrowings, letters of credit | 115,800 | |||||||||
7% $15M subordinated notes | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Total borrowings | [2] | $ 13,553 | 13,607 | |||||||
Interest rate | 7.00% | |||||||||
Debt Instrument Principal Amounts | $ 15,000 | $ 0 | ||||||||
Subordinated convertible debentures, Term | 6 years | |||||||||
Consideration for tender offer | $ 13,200 | |||||||||
Accruals classified as current | $ 400 | |||||||||
10.25 % term loan | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Total borrowings | $ 205,900 | |||||||||
Interest rate | 10.25% | |||||||||
Accruals classified as current | $ 12,600 | |||||||||
Term Loan | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Total borrowings | [3] | 290,493 | $ 289,904 | |||||||
Unsecured term loan | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Total borrowings | $ 207,000 | |||||||||
Interest rate | 8.75% | |||||||||
Borrowings, conversion of convertible instruments, shares issued (in shares) | shares | 786,982 | |||||||||
6.75% $100M convertible debentures | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Notional amount | $ 100,000 | |||||||||
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 | |||||||||
Interest rate | 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 | $ 9,200 | |||||||||
Interest rate | 6.50% | 6.50% | 6.50% | 6.50% | ||||||
Borrowings, conversion of convertible instruments, shares issued (in shares) | shares | 35,737 | |||||||||
[1] | Three months ended December 31, | |||||||||
[2] | As part of the September 2020 Recapitalization, Just Energy issued $15 million principal amount of 7.0% subordinated notes (“Note Indenture”) to holders of the subordinated convertible debentures, which has a six-year maturity. The principal amount was reduced through a tender offer for no consideration on October 19, 2020 to $13.2 million. The Note Indenture bears an annual interest rate of 7.0% payable in kind. The balance at December 31, 2021 includes an accrual of $0.4 million for interest payable on the notes. As a result of the CCAA filing, the Company is in default under the Note Indenture’s Trust Indenture agreement. However, any potential actions by the lenders under the Note Indenture 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 Note Indenture has been classified as current. | |||||||||
[3] | As part of the recapitalization transaction that the Company completed in September 2020 (“September 2020 Recapitalization”), Just Energy issued a USD $205.9 million principal note (the “Term Loan”) maturing on March 31, 2024. The note bears interest at 10.25% . The balance at December 31, 2021 includes an accrual of $12.6 million for interest payable on the notes. As a result of the CCAA filing, the Company is in default under the Term Loan. However, any potential actions by the lenders under the Term Loan have been stayed pursuant to the Court Order, and the Company is not issuing additional notes equal to the capitalized interest. Given this acceleration option, the Term Loan has been classified as current. |
REPORTABLE BUSINESS SEGMENTS -
REPORTABLE BUSINESS SEGMENTS - (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
Operating segments: | |||||
Sales | $ 650,691 | $ 627,016 | $ 1,964,132 | $ 2,050,973 | |
Cost of goods sold | 434,261 | 446,571 | 1,585,921 | 1,380,680 | |
Gross margin | 216,430 | 180,445 | 378,211 | 670,293 | |
Depreciation and amortization | 10,672 | 5,346 | 19,828 | 18,298 | |
Administrative expense | 32,473 | 30,408 | 99,424 | 112,507 | |
Selling and marketing | 43,570 | 42,269 | 128,029 | 137,140 | |
Other operating expenses | 9,284 | 4,893 | 21,421 | 32,617 | |
Segment profit (loss) | 120,431 | 97,529 | 109,509 | 369,731 | |
Finance costs | (14,271) | (17,677) | (39,079) | (69,274) | |
Restructuring Costs | (7,118) | ||||
Gain on September 2020 Recapitalization transaction, net | 1,026 | 51,367 | |||
Unrealized gain (loss) on derivative instruments and other | (274,841) | (71,558) | 304,811 | (79,177) | |
Realized gain (loss) on derivative instruments | 78,575 | (56,905) | 144,921 | (276,808) | |
Other expenses, net | 154 | (1,431) | (392) | (4,488) | |
Realized gain (loss) on investment | (10,273) | 18,727 | |||
Reorganization costs | (40,984) | (79,570) | |||
Provision for income taxes | 1,978 | (3,311) | 3,190 | (4,618) | |
PROFIT (LOSS) FROM CONTINUING OPERATIONS | (139,231) | (52,327) | 462,117 | (20,385) | |
Loss after tax from discontinued operations | 4,788 | 630 | |||
PROFIT (LOSS) FOR THE PERIOD | (139,231) | (47,539) | 462,117 | (19,755) | |
Capital expenditures | 8,795 | 7,972 | |||
Total goodwill | 163,954 | 264,651 | 163,954 | 264,651 | $ 163,770 |
Operating segments | Mass Market | |||||
Operating segments: | |||||
Sales | 350,061 | 342,092 | 1,066,539 | 1,152,095 | |
Cost of goods sold | 171,487 | 215,702 | 766,308 | 685,859 | |
Gross margin | 178,574 | 126,390 | 300,231 | 466,236 | |
Depreciation and amortization | 9,592 | 4,470 | 17,113 | 15,608 | |
Administrative expense | 10,206 | 8,561 | 29,707 | 26,747 | |
Selling and marketing | 29,578 | 25,538 | 83,877 | 82,760 | |
Other operating expenses | 9,782 | 3,699 | 20,815 | 24,767 | |
Segment profit (loss) | 119,416 | 84,122 | 148,719 | 316,354 | |
Capital expenditures | 7,893 | 7,163 | |||
Total goodwill | 163,954 | 167,997 | 163,954 | 167,997 | |
Operating segments | Commercial | |||||
Operating segments: | |||||
Sales | 300,630 | 284,924 | 897,593 | 898,878 | |
Cost of goods sold | 262,774 | 230,869 | 819,613 | 694,821 | |
Gross margin | 37,856 | 54,055 | 77,980 | 204,057 | |
Depreciation and amortization | 1,080 | 876 | 2,715 | 2,690 | |
Administrative expense | 3,624 | 3,458 | 10,724 | 12,894 | |
Selling and marketing | 13,992 | 16,731 | 44,152 | 54,380 | |
Other operating expenses | (498) | 1,194 | 606 | 7,850 | |
Segment profit (loss) | 19,658 | 31,796 | 19,783 | 126,243 | |
Capital expenditures | 902 | 809 | |||
Total goodwill | 96,654 | 96,654 | |||
Operating segments | Corporate and shared services | |||||
Operating segments: | |||||
Administrative expense | (18,389) | 58,993 | 72,866 | ||
Segment profit (loss) | 18,643 | $ (18,389) | $ (58,993) | $ (72,866) | |
Elimination of intersegment amounts | Corporate and shared services | |||||
Operating segments: | |||||
Administrative expense | $ (18,643) |
REPORTABLE BUSINESS SEGMENTS _2
REPORTABLE BUSINESS SEGMENTS - Geographical Disclosure (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
Operating segments: | |||||
Sales | $ 650,691 | $ 627,016 | $ 1,964,132 | $ 2,050,973 | |
Non-current assets | 240,660 | 240,660 | $ 252,320 | ||
Canada | |||||
Operating segments: | |||||
Sales | 160,953 | 125,029 | 429,519 | 336,355 | |
Non-current assets | 173,558 | 173,558 | 178,802 | ||
United States | |||||
Operating segments: | |||||
Sales | 489,738 | $ 501,987 | 1,534,613 | $ 1,714,618 | |
Non-current assets | $ 67,102 | $ 67,102 | $ 73,518 |
INCOME TAXES - Components of Ta
INCOME TAXES - Components of Tax Expenses (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
INCOME TAXES | ||||
Current income tax expense (recovery) | $ (2,159) | $ 3,311 | $ (3,516) | $ 4,676 |
Deferred income tax expense (recovery) | 181 | 326 | (58) | |
Provision (recovery) for income taxes | $ (1,978) | $ 3,311 | $ (3,190) | $ 4,618 |
SHAREHOLDERS CAPITAL (Details)
SHAREHOLDERS CAPITAL (Details) - $ / shares | 1 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2021 | |
Disclosure of classes of share capital [line items] | ||
Number of shares authorized (in shares) | 50,000,000 | |
Share Consolidation ratio | 33:1 share consolidation | |
Preferred shares | ||
Disclosure of classes of share capital [line items] | ||
Par value per share (in CAD per share) | $ 0 | |
Number of shares outstanding | 0 | |
Common shares | ||
Disclosure of classes of share capital [line items] | ||
Number of shares issued and fully paid (in shares) | 0 |
SHAREHOLDERS CAPITAL - Classes
SHAREHOLDERS CAPITAL - Classes of share capital (Details) - CAD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
Disclosure of classes of share capital [line items] | |||
Balance, beginning of period | $ (594,822) | ||
Balance, end of period | $ (126,761) | $ (215,843) | $ (594,822) |
Shareholders' capital | |||
Disclosure of classes of share capital [line items] | |||
Balance, beginning of period (in shares) | 48,078,637 | ||
Balance, beginning of period | $ 1,537,863 | ||
Balance, end of period (in shares) | 48,078,637 | 48,078,637 | |
Balance, end of period | $ 1,537,863 | $ 1,537,863 | $ 1,537,863 |
Common shares | Shareholders' capital | |||
Disclosure of classes of share capital [line items] | |||
Balance, beginning of period (in shares) | 48,078,637 | 4,594,371 | 4,594,371 |
Balance, beginning of period | $ 1,537,863 | $ 1,099,864 | $ 1,099,864 |
Share-based awards exercised (in shares) | 91,854 | ||
Share-based units exercised | 929 | $ 929 | |
Issuance of shares due to September 2020 Recapitalization (in shares) | 0 | 43,392,412 | |
Issuance of shares due to September 2020 Recapitalization | $ 0 | 438,642 | $ 438,642 |
Issuance cost | (1,572) | $ (1,572) | |
Balance, end of period (in shares) | 48,078,637 | 48,078,637 | |
Balance, end of period | $ 1,537,863 | $ 1,537,863 | $ 1,537,863 |
Preferred shares | Shareholders' capital | |||
Disclosure of classes of share capital [line items] | |||
Balance, beginning of period (in shares) | 0 | 4,662,165 | 4,662,165 |
Balance, beginning of period | $ 0 | $ 146,965 | $ 146,965 |
Exchanged to common shares (in shares) | 0 | (4,662,165) | |
Exchanged to common shares | $ 0 | $ (146,965) | |
Balance, end of period (in shares) | 0 | ||
Balance, end of period | $ 0 |
OTHER EXPENSES - Other operatin
OTHER EXPENSES - Other operating expenses (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
OTHER EXPENSES | |||||
Amortization of intangible assets | $ 7,625 | $ 3,840 | $ 14,999 | $ 12,458 | |
Depreciation of property and equipment | 3,047 | 1,506 | 4,829 | 5,840 | |
Provision for doubtful accounts | 8,866 | 3,358 | 19,976 | 26,960 | $ 34,260 |
Share-based compensation | 418 | 1,535 | 1,445 | 5,657 | |
Other operating expenses | $ 19,956 | $ 10,239 | $ 41,249 | $ 50,915 |
OTHER EXPENSES - Employee expen
OTHER EXPENSES - Employee expenses (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
OTHER EXPENSES | ||||
Wages, salaries and commissions | $ 20,273 | $ 12,587 | $ 60,802 | $ 46,305 |
Benefits | 6,023 | 7,571 | 19,560 | 21,588 |
Employee benefits expense | $ 26,296 | $ 20,158 | $ 80,362 | $ 67,893 |
OTHER EXPENSES - (Details)
OTHER EXPENSES - (Details) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
OTHER EXPENSES | ||||
Employee Expense Included in Administrative Expenses | $ 16.6 | $ 12.2 | $ 50.9 | $ 44.7 |
Employee Expense Included in Selling and Marketing Expenses | $ 9.7 | $ 8 | $ 29.5 | $ 23.2 |
REORGANIZATION COSTS (Details)
REORGANIZATION COSTS (Details) - CAD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Dec. 31, 2021 | Dec. 31, 2021 | |
REORGANIZATION COSTS | ||
Professional and advisory costs | $ 13,869 | $ 37,212 |
Key employee retention plan | 1,938 | 7,174 |
Prepetition claims and other costs | 25,177 | 35,184 |
Reorganization costs | $ 40,984 | $ 79,570 |
EARNINGS PER SHARE - Earnings (
EARNINGS PER SHARE - Earnings (Details) - CAD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
BASIC EARNINGS (LOSS) PER SHARE | ||||
Profit (loss) from continuing operations available to shareholders | $ (139,231) | $ (52,327) | $ 462,117 | $ (20,385) |
Profit for the period available to shareholders | $ (139,231) | $ (47,539) | $ 462,117 | $ (19,755) |
Basic weighted average shares outstanding (in shares) | 48,078,637 | 48,043,495 | 48,078,637 | 26,355,407 |
Basic earnings (loss) per share from continuing operations available to shareholders (in CAD per share) | $ (2.90) | $ (1.09) | $ 9.61 | $ (0.77) |
Basic earnings (loss) per share available to shareholders (in CAD per share) | $ (2.90) | $ (0.99) | $ 9.61 | $ (0.75) |
DILUTED EARNINGS (LOSS) PER SHARE | ||||
Profit (loss) from continuing operations available to shareholders | $ (139,231) | $ (52,327) | $ 462,117 | $ (20,385) |
Adjusted profit (loss) for the period available to shareholders | $ (139,231) | $ (47,539) | $ 462,117 | $ (19,755) |
Basic weighted average shares outstanding (in shares) | 48,078,637 | 48,043,495 | 48,078,637 | 26,355,407 |
Restricted share (in shares) | 3,253 | 44,370 | ||
Deferred share grants (in shares) | 187 | 4,296 | ||
Dilutive effect, convertible instruments | 190,983 | 164,579 | 190,983 | 55,059 |
Restricted share units | 17,053 | 5,643 | ||
Dilutive effect, options | 650,000 | 572,283 | 650,000 | 192,153 |
Shares outstanding on a diluted basis (in shares) | 48,919,620 | 48,800,850 | 48,919,620 | 26,656,928 |
Diluted earnings (loss) from continuing operations per share available to shareholders (in CAD per share) | $ (2.90) | $ (1.09) | $ 9.45 | $ (0.77) |
Diluted earnings (loss) per share available to shareholders (in CAD per share) | $ (2.90) | $ (0.99) | $ 9.45 | $ (0.75) |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Feb. 02, 2022lawsuit | Dec. 31, 2021CAD ($) | Mar. 31, 2021CAD ($) |
Legal proceedings | |||
Commitments and Contingencies: | |||
Legal proceedings provision | $ 12,000 | ||
Secured legal proceeding provisions | 1,000 | ||
Number of lawsuits dismissed | lawsuit | 5 | ||
DIP | |||
Commitments and Contingencies: | |||
Financial effect | 51.2 | $ 46.3 | |
Letters of credit | |||
Commitments and Contingencies: | |||
Borrowings, letters of credit | $ 171.1 | $ 99.4 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Commitments (Details) $ in Thousands | Dec. 31, 2021CAD ($) |
Disclosure of contingent liabilities [line items] | |
Gas, electricity and non-commodity contracts | $ 3,089,638 |
Not later than one year | |
Disclosure of contingent liabilities [line items] | |
Gas, electricity and non-commodity contracts | 525,713 |
1-3 years | |
Disclosure of contingent liabilities [line items] | |
Gas, electricity and non-commodity contracts | 2,082,448 |
4-5 years | |
Disclosure of contingent liabilities [line items] | |
Gas, electricity and non-commodity contracts | 388,541 |
More than 5 years | |
Disclosure of contingent liabilities [line items] | |
Gas, electricity and non-commodity contracts | $ 92,936 |