Spark Power Announces Record Revenue and EBITDA for Second Consecutive Quarter and Full Year 2019

Spark Power Announces Record Revenue and EBITDA for Second Consecutive Quarter and Full Year 2019

Fourth Quarter revenue grows 53% Year over Year to $58.0 million
Fourth Quarter Adjusted EBITDA grows 36.7% Year over Year to $8.4 million
(Spark Power reports in Canadian dollars unless otherwise specified) 

OAKVILLE, ONTARIO – March 24, 2020 – Spark Power Group Inc. (TSXSPG), parent company of Spark Power Corp. (“Spark Power or the “Company”)today announced record financial results for the three and twelve-month periods ended December 31, 2019.   

 We had a terrific year at Spark PowerWith our acquisitions and the effects of our successful cost out program, our annual revenue run rate is now $222 million with $37 million of run rate EBITDA, up from $210 million and $33 million respectively as of last quarter, said Jason Sparaga, Co-Founder and Co-CEO, Spark Power Corp. 

We worked hard over the past year to establish our regional and distributed operating model and on strengthening our financial position. These efforts have resulted in a more efficient, robust, and resilient business, allowing our experienced and cohesive management team to quickly adapt to both growth opportunities and market challenges. As we face the COVID-19 crisiswe are responding with aggressive, but measured, actions focused on protecting the health of our employees, serving our customers, mitigating financial impacts and ensuring that we come out of the crisis strong.  We are seeing the benefits of our efforts over the past few years to build a diversified customer base, with reduced exposure to cyclical industries. Substantial portions of our commercial and industrial customers include food and beverage suppliers, data centers and ecommerce warehousing – each of which are relatively less affected by economic cycles and crises such as COVID-19 Still, we are seeing material project delays and impact to our operationsWe are prepared for this to get worse before it gets better – and we are ready, added Sparaga.  


Financial Highlights – 4th Quarter 

  • Record quarterly revenue at $58.0 million, as compared to $37.9 million from the comparable quarter in 2018 representing an increase of 53.0%.
  • Record quarterly adjusted EBITDA at $8.4 million, as compared to $6.0 million from the comparable quarter in 2018 representing an increase of 38.5%.
  • Quarterly revenue growth balanced between organic growth of 35.1%, and growth from acquisitions o17.9%.
  • Continued focus on managing selling, general and administration costs, now at 23.6% of revenue in the fourth quarter as compared to 28.3% in the comparable quarter in 2018.
  • Gross margin declined in the fourth quarter to 30.8% as compared to 37.8% in the comparable quarter in 2018, primarily from changes in revenue mix.
  • During the quarter, the Company completed a Rights Offering resulting in the issuance of 5,587,105 shares for gross proceeds of $5.4 million. 


Financial Highlights – Fiscal 2019 

  • Record pro forma annual revenue for fiscal 2019 of $222.3 million, as compared to $179.4 million in 2018 representing an increase of 23.9%.
  • Record annual pro forma adjusted EBITDA for fiscal 2019 of $31.7 million, as compared to $30.7 million in 2018 representing an increase of 3.2%.
  • Record annual revenue for fiscal 2019 of $188.6 million, as compared to $119.8 million in 2018 representing an increase of 57.5%.
  • Record annual adjusted EBITDA for fiscal 2019 of $25.3 million, as compared to $20.5 million in 2018 representing an increase of 23.4%.
  • Strong year on year revenue growth, balanced between organic growth of 26.7% and growth from acquisitions of 30.7%.
  • Incurred a total of $2.0 million in one-time costs during the third and fourth quarters associated with Integration cost reduction plan that resulted in an annual $6.5 million reduction in underlying selling, general and administration costs.
  • Gross margin declined in fiscal 2019 to 34.0% as compared to 36.7% in fiscal 2018, primarily from changes in revenue.
  • During the year, the Company enhanced various elements of its Credit Agreement with its lender, Bank of Montreal, that included:
    1. An increase of $10.0 million in the demand revolving credit facility to $30.0 million,
    2. The addition of a capital expenditure demand revolving credit facility of $5.0 million to finance growth capital expenditures,
    3. The addition of a $25.0 million acquisition line to fund acquisitions,
    4. A paydown of $4.5 million under the non-revolving term loan from partial proceeds of the Rights offering completed in the fourth quarter and reduction in quarterly principal amortization for the duration of the term loan.

Business Highlights—Operations 

  • Reorganization of our business units, along Regional Lines for structural cost reductions and longer-term scalability of the business has been fully realized. As of January 1, 2020, we will be reporting our financial results on this regional basis, to reflect the way we are operating the business.
  • Ended the year with 35 locations, including 18 branches in Canada and 6 branches in the United States.
  • Significantly progressed U.S. expansion strategy, diversifying operations and extending footprint across regions identified as highly strategic to the Company’s long-term growth.
    • Achieved approximately $8.2 million in annual revenue, compared with negligible revenue in the prior year, with organic growth representing 61% of the increase.
    • Acquired One Wind, with over 80% of its revenues and employees in its U.S. operations. adding over 200 U.S. based technical and management team members, now accounting for approximately 15% of the total Spark Power workforce.
    • Completed significant work for existing Canadian customers with facilities in the U.S., prioritizing branch openings to support these customers.


Business Highlights—Corporate Development 

  • To further support our Trusted Partner in Power™ brand promise, Spark Power launched its rebranding initiative to integrate 11 subsidiary brands into Spark Power Corp®.
  • Brand integration is expected to be fully realized across North America by the end of 2020.
  • We will continue to invest in our Bullfrog brand and position it as Spark Power’s sustainability brand. 
  • Marketing and selling teams are already operating as integrated organizations, supported by relaunched marketing materials, inside sales and a new corporate wide sales training program.  


Quarterly Conference Call 

As previously communicated, given the significant and ongoing developments surrounding COVID-19, Spark Power Corp has decided not to host a conference call to discuss these results. The company plans to schedule a conference call to discuss our results when more appropriate. 

Spark Power’s 2019  Audited Consolidated Financial Statements and Management Discussion and Analysis are available on Spark Power’s website at, and will be filed on SEDAR at   


About Spark Power  

Spark Power is the leading independent provider of end-to-end electrical contracting, operations and maintenance services, and energy sustainability solutions to the industrial, commercial, utility, and renewable asset markets in North America. We work to earn the right to be our customers’ Trusted Partner in Power™. Our highly skilled and dedicated people, located in the communities we serve, combined with our knowledge of the power industry, technology expertise, and commitment to safety, ensures we deliver the right solutions that keep our customers’ operations up and running today and better equipped for tomorrow. Learn more at 


Non-IFRS Measures  

The Company prepares and releases unaudited consolidated interim financial statements and audited consolidated annual financial statements prepared in accordance with IFRS. In this and other earnings releases and investor conference calls, as a complement to results provided in accordance with IFRS, the Company also discloses and discusses certain financial measures not recognized under IFRS and that do not have standard meanings prescribed by IFRS. These include “EBITDA”, “Adjusted EBITDA”, “Pro-forma Adjusted EBITDA”, “EBITDA Margin”, “Adjusted EBITDA Margin”, “Pro-forma Adjusted EBITDA Margin”, “Pro-forma Revenue”, “Adjusted Working Capital”, and “Adjusted Net and Comprehensive Income (Loss)”. These non-IFRS measures are used to provide investors with supplemental measures of Spark Power’s operating performance and highlight trends in Spark Power’s business that may not otherwise be apparent when relying solely on IFRS measures. Spark also believes that providing such information to securities analysts, investors and other interested parties who frequently use non-IFRS measures in the evaluation of issuers will allow them to better compare Spark Power’s performance against others in its industry. Management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation. For a reconciliation of these non-IFRS measures see the Company’s management’s discussion and analysis for the three and twelve months ended December 31, 2019. The non-IFRS measures should not be construed as alternatives to results prepared in accordance with IFRS. 


Caution Regarding Forward-Looking Statements  

This news release may contain forward-looking statements (within the meaning of applicable securities laws) which reflect Spark Power’s current expectations regarding future events. Forward-looking statements are identified by words such as “believe”, “anticipate”, “project”, “expect”, “intend”, “plan”, “will”, “may”, “estimate” and other similar expressions. These statements are based on Spark Power’s expectations, estimates, forecasts and projections and include, without limitation, statements regarding the future success of the Company’s business, including revenue growth, synergistic savings expected to be realized, potential expansion of the business and include, without limitation, statements regarding the growth and financial performance of Spark Power’s business and execution of its business strategy by Mr. Sparaga. 

The forward-looking statements in this news release are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Several factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, Spark Power assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.  


Selected Consolidated Financial Information 


Reconciliation of comprehensive income (loss) to EBITDA, Adjusted EBITDA, and Pro-forma Adjusted EBITDA 


The following tables summarize Spark Power’s results for the periods indicated: 


Investor and Regulatory Inquiries:

Dan Ardila
Chief Financial Officer
+1 (905) 829-3336 x127

Media Inquiries:
Natasha McNabb
Corporate Communications Specialist
+1 (289) 259-4399