Spark Energy Inc (NASDAQ:SPKE) posted financial report for the quarter closed December 31, 2017. For Q4 2017, the company posted adjusted EBITDA of $28.9 million versus adjusted EBITDA of $24.8 million for the same quarter, a year ago. This increase is primarily attributable to increased volumes from the Perigee and Verde acquisitions.
Nathan Kroeker, the CEO and President of Spark Energy, expressed that they are extremely proud to have recorded another year of exceptional financial results irrespective of harsh weather throughout the year. They faced a mild summer and numerous severe weather events, counting a devastating hurricane, however Spark was able to hike RCE count and enhance both bottom and top line financial performance.
During 2017, the company closed three acquisitions, showcased by the Verde acquisition in July. Kroeker added that they implemented a new credit facility and have added 6 new banks and as much as $185 million in commitments. Moreover, they recently closed a follow-on offering of $50 million of their Series ‘A’ Preferred Stock. They introduced a firm-wide measure to further integrate acquisitions and record notable cost-to-serve synergies, counting the early close of the Verde earnout.
The CEO of Spark Energy reported that as they move through 2018, they continue to strategically expand customers and follow additional opportunities to further restructure their business model. In this month, they agreed to buy a small peer in the Northeast and book of clients from an affiliate of their sponsor. They anticipate both to be accretive to adjusted EBITDA. Their sponsor also decided to reintegrate Retailco Services into Spark, which will streamline their structure and result in substantial and immediate cash savings to the firm.
Finally, Spark Board has recruited Morgan Stanley as a financial expert to explore strategic alternatives. They consider that their stock price has not shown the strong performance in financial performance they have demonstrated over last few years as a public firm, and look forward to assessing additional opportunities to reveal shareholder value.