Just Energy Group Inc. Announces Adjustment of Accounts Receivable
July 23 2019 - 8:00AM
Just Energy Group Inc. Announces Adjustment of Accounts
Receivable
Just Energy Group Inc. (“
Just Energy”) announced
today that as part of the previously announced Strategic Review
process, management identified customer enrolment and non-payment
issues, primarily in Texas, over the past 12 months. As
management identified these issues, more robust operational
controls were put in place, culminating in numerous improvements
being implemented during June and July 2019.
Due to the identified issues, management is
updating its provisioning methodology used to estimate its reserve
for trade receivables. Management expects an incremental
impairment of the Texas residential accounts receivable of
approximately CAD $45 to $50 million as of June 30, 2019.
“The enrolment and non-payment issues have been
remediated and management is confident in the business and
operational controls currently in place. These issues will
not have a continuing effect on future cash flows,” said Rebecca
MacDonald, Just Energy’s Executive Chair. Ms. MacDonald
continued, “The Strategic Review is ongoing.”
ABOUT JUST ENERGY
Just Energy (TSX:JE; NYSE:JE) is a leading
consumer company focused on essential needs, including electricity
and natural gas commodities; health and well-being, such as water
quality and filtration devices; and utility conservation, bringing
energy efficient solutions and renewable energy options to
consumers. Currently operating in the United States, Canada and the
United Kingdom, Just Energy serves residential and commercial
customers. Just Energy is the parent company of Amigo Energy,
EdgePower Inc., Filter Group Inc., Green Star Energy, Hudson
Energy, Interactive Energy Group, Just Energy Advanced Solutions,
Tara Energy, and Terrapass. Visit https://investors.justenergy.com/
to learn more.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking
statements. These statements are based on current expectations that
involve a number of risks and uncertainties which could cause
actual results to differ from those anticipated. These risks
include, but are not limited to, general economic and market
conditions, levels of customer natural gas and electricity
consumption, rates of customer additions and renewals, rates of
customer attrition, fluctuations in natural gas and electricity
prices, changes in regulatory regimes, results of litigation and
decisions by regulatory authorities, competition and dependence on
certain suppliers. Additional information on these and other
factors that could affect Just Energy’s operations, financial
results or dividend levels are included in Just Energy’s annual
information form and other reports on file with Canadian securities
regulatory authorities which can be accessed through the SEDAR
website at www.sedar.com, on the U.S. Securities and Exchange
Commission’s website at www.sec.gov or through Just Energy’s
website at www.justenergygroup.com.
Neither the Toronto Stock Exchange nor the New
York Stock Exchange has approved nor disapproved of the information
contained herein.
FOR FURTHER INFORMATION PLEASE
CONTACT:
Jim BrownChief Financial OfficerPhone: (713) 544-8191
jbrown@justenergy.com
or
Michael CummingsInvestor RelationsPhone: (617)
982-0475michael.cummings@alpha-ir.com
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