Just Energy Provides Update on the Strategic Review and COVID-19
April 09 2020 - 7:00AM
Just Energy Group Inc. (“
Just Energy” or the
“
Company”) today provided a business update
relating to the impact of the COVID-19 pandemic on its business,
which it has been closely monitoring and assessing. The Company has
taken a number of steps to ensure the health and safety of its
employees, customers and communities, including suspending
door-to-door selling, in-store retail partnerships and all business
travel, as well as requiring employees to work from their homes
unless required for business continuity.
Just Energy also provided an update on its
previously announced strategic review process, which has taken into
account the impact of COVID-19 on the Company and the markets more
generally. Since the commencement of the strategic review on June
6, 2019, the Company has taken a number of actions to improve and
optimize the Company’s business and refine its geographic
footprint, including the sale of its U.K. operations, Irish
business and certain other assets. The Company also cut
approximately $60 million in costs in fiscal 2020, net of costs
associated with severance and the strategic review process. The
Company is no longer in active discussions regarding a specific
transaction at this time, but is continuing to explore and evaluate
alternatives under the strategic review process, including
additional cost reduction and optimization strategies, improving
efficiencies and eliminating redundancies, sales of certain assets,
improvements to liquidity and leverage, refinancings and the sale
of the entire business. Such efforts are being pursued with the
goal of strengthening the Company’s financial foundation for the
long-term benefit of Just Energy and its stakeholders as the
Company continues to face and respond to the realities of the
COVID-19 pandemic.
The Company does not intend to comment further
with respect to the strategic review unless and until it determines
that additional disclosure is appropriate in the circumstances and
in accordance with the requirements of applicable securities laws.
The Company cautions that there is no assurance that a transaction
will result from the strategic review.
About Just Energy Group Inc.Just Energy is
a consumer company focused on essential needs, including
electricity and natural gas 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 and Canada, Just Energy serves
residential and commercial customers. Just Energy is the
parent company of Amigo Energy, EdgePower Inc., Filter
Group Inc., Hudson Energy, Interactive Energy Group, Tara
Energy, and TerraPass.
Visit https://investors.justenergy.com to learn more.
Also, find us on Facebook and follow us
on Twitter.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking
statements including, but not limited to, statements and
information regarding the impact of COVID-19 pandemic on the
Company’s business and the strategic review process, the ability of
the Company to implement any additional cost reductions or
optimization strategies, improve efficiencies, eliminate
redundancies, sell assets or the entire business, improve liquidity
or leverage or refinance its existing debt, and the impact of any
such actions on the Company’s financial foundation. 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, and the Company undertakes no
obligation to update or revise any forward-looking statement. These
risks include, but are not limited to, the impact of the evolving
COVID-19 pandemic on the Company’s business and sales including
risks associated with reliance on suppliers, uncertainties relating
to the ultimate spread, severity and duration of COVID-19 and
related adverse effects on the economies and financial markets of
countries in which the Company operates, the ability of the Company
to successfully implement its business continuity plans with
respect to the COVID-19 pandemic, the ability of the Company to
extend its credit facility, the results of strategic review
process, the ability of the Company to reduce selling, marketing
and general and administrative expenses and the quantum of such
reductions and the impact thereof on the Company’s current fiscal
year, the Company’s ability to identify further
opportunities to improve its cost structure, 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 and
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 Brown Chief Financial Officer Just Energy Phone: 713-544-8191
jbrown@justenergy.com
or
Investors Michael Cummings Alpha IR Phone:
617-982-0475 michael.cummings@alpha-ir.com
Media Boyd Erman Longview Communications Phone:
416-523-5885 berman@longviewcomms.ca
Source: Just Energy Group Inc.
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