Enercare makes acquisitions
Enercare is primarily an Ontario company that supplies water heaters,venting equipment and HVAC equipment.It also does sub-metering and has some maintenance systems. Sub metering is a key part of their business and it is cash positive.It has had a tremenduous growth in assets and revenues since 2011. Recently it acquired Direct Energy Marketing and previously it acquired Triacta Power Technologies.It is in the process of integrating Direct Energy and things are progressing well.Integration is continuing in the second half.The accretion of income from these acquisitons is ahead of target.It also launched a new brand and took over the Exhibition Place in Toronto.
Financial Statistics
Revenues were up to $135 million or 82% above the second quarter of 2014; for six months it was $276 million or up 77% over the second half of 2014.EBITDA was up 41% to $57 million for the 3 month period and up 36% to $108 million for the first half.Net earnings were up 116% to $16 million for 3 months and up 66% to $24 million for 6 months. The payout ratio fell from 71% to 60% for 3 months and from 72% to 64% for the 6 month period.This in spite of the fact that ECI raised it's dividend in March 16%.It certainly appears as if Enercare made two good acquisitions.
Financial Summary
Enercare has taken on two acquisitions in a short period of time although debt has risen the debt/equity ratio is still not excessive.Long term debt has only risen from $530 million in 2011 to $686 million in 2014.While the debt to equity ratio has fallen since 2011;it now is about 1.4.Investors are pleased because earnings per share has risen almost every quarter since the first quarter of 2014.Qtrade shows it's e.p.s. at $.35 per share while Yahoo Finance shows it at $.37 per share.This blog foreacsts e.p.s. for 2015 at $.55 to $.57 per share. The price/earnings ratio is a little high at 37 times but Yahoo Finance predicts it will be around 20 for the year.ECI believes that income and adjusted EBITDA will continue to rise as the integration continues of Direct Energy Marketing.This blog hopes that ECI continues to make acquisitions similar to the two it has made;it appears as if the synergies (in total) will be significant. As a result look for Enercare to be around $16 to $17 per share in Decmber.
Financial Statistics
Revenues were up to $135 million or 82% above the second quarter of 2014; for six months it was $276 million or up 77% over the second half of 2014.EBITDA was up 41% to $57 million for the 3 month period and up 36% to $108 million for the first half.Net earnings were up 116% to $16 million for 3 months and up 66% to $24 million for 6 months. The payout ratio fell from 71% to 60% for 3 months and from 72% to 64% for the 6 month period.This in spite of the fact that ECI raised it's dividend in March 16%.It certainly appears as if Enercare made two good acquisitions.
Financial Summary
Enercare has taken on two acquisitions in a short period of time although debt has risen the debt/equity ratio is still not excessive.Long term debt has only risen from $530 million in 2011 to $686 million in 2014.While the debt to equity ratio has fallen since 2011;it now is about 1.4.Investors are pleased because earnings per share has risen almost every quarter since the first quarter of 2014.Qtrade shows it's e.p.s. at $.35 per share while Yahoo Finance shows it at $.37 per share.This blog foreacsts e.p.s. for 2015 at $.55 to $.57 per share. The price/earnings ratio is a little high at 37 times but Yahoo Finance predicts it will be around 20 for the year.ECI believes that income and adjusted EBITDA will continue to rise as the integration continues of Direct Energy Marketing.This blog hopes that ECI continues to make acquisitions similar to the two it has made;it appears as if the synergies (in total) will be significant. As a result look for Enercare to be around $16 to $17 per share in Decmber.
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