Investor relations


Annual revenue grows 12.1% Year over Year to $255.8 million.

 Annual Adjusted EBITDA Margin compresses 5.8% Year over Year to 8.4%

(Spark Power reports in Canadian dollars unless otherwise specified)


OAKVILLE, ONTARIO – March 30, 2022 — Spark Power Group Inc. (TSX: SPG), parent company of Spark Power Corp. (“Spark Power” or the “Company”), today announced financial results for the three-and twelve-month periods, ended December 31, 2021. All amounts are in Canadian dollars unless otherwise specified.

“Throughout 2021, our business grew 12.1% year over year, organically; evidence of our strong branch network, competitive service offerings, and positive industry tailwinds,” said Richard Jackson, President & CEO, Spark Power. “In our fourth quarter, we continued to face challenges with the surge of COVID-19’s Omicron variant, in addition to the continuous global supply chain disruptions and rapidly rising inflation, all of which put significant pressures on our margins. We are taking proactive steps to transition our business to succeed in this environment, including raising $39.6 million of new equity capital. This additional financial flexibility will support our experienced operations-focused team to execute on our strategic initiatives to drive margin recovery and further organic growth, while taking advantage of the ongoing shifts to electrification,” he added.

“As we gradually recover from the margin pressures perpetuated by the ongoing extreme macro-economic conditions, we are acutely focused on conservatively managing our liquidity and driving profitable revenue growth,” said Richard Perri, EVP and CFO, Spark Power. “With the liquidity provided by the recent $39.6 million equity injection from our committed founders and our new institutional investors and the continued support of our bank, we are well positioned to complete the multi-year integration journey we are on, and ultimately realize on the benefits from a stable and scalable operating platform”, he added.

After assuming the role as President and CEO of Spark Power in January 2021, Jackson focused on building a world class, operationally focused Senior Leadership Team, which was effectively achieved in the latter part of 2021 and early in 2022.   Jackson also immediately launched Project Darwin, a two-year systems, process, and organizational integration plan that is expected to be completed by the end of 2022.  This will result in Spark becoming a fully integrated operating platform using one brand, one organization structure and a common set of key business processes and systems that will improve operational predictability and provide scale for future growth as Spark transitions into the next stage of maturity.

Update on Liquidity, Outlook and Potential Covenant Beaches

Further to our communication on Feb 25, 2022, Management reports that the actual fourth quarter 2021 results have caused the Company to be in breach of its financial maintenance covenants under its existing secured credit facility (the “Facility”) with its senior lender (the “Lender”). The Company continues to work constructively with the Lender to obtain a waiver and amendment agreement, waiving these covenant breaches and providing for an amendment to such near-term covenants, however, there can be no guarantee that a waiver and amendment will be obtained. In the meantime, the Company continues to operate under the terms of the Facility and will provide an update to the market as more details become available.

Financial Highlights – Fourth Quarter

  • Reported revenue of $65.4 million, as compared to $66.9 million in Q4 2020, representing a decrease of 2.2%. On an adjusted basis, revenue increased to $68.5 million or 2.4% over the same quarter in 2020.
  • Gross margins, excluding depreciation and amortization, declined in the fourth quarter to 19.2% (adjusted gross margins 23.8%) as compared to 32.0% in 2020, primarily due to government subsidies recognized in the same quarter in 2020, the ongoing impact of COVID-19 protocols on labor efficiencies, the rapid rise in inflation, and business related to large projects and higher Renewables revenue.
  • Selling, general and administration costs, excluding depreciation and amortization, were $15.1 million or 23.1% of revenue (22.1% on an adjusted basis) as compared to $12.6 million or 18.8% in the same quarter in 2020.
  • Reported EBITDA loss was $10.2 million or -15.7% of revenue and adjusted EBITDA was $2.5 million or 3.8% of revenue, as compared to $8.9 million or 13.3% of revenue from the comparable quarter in 2020.
  • As part of the refined approach adopted in the third quarter to estimating revenue and costs associated with longer-term projects, the Company recognized estimate updates of $3.7 million in the quarter, resulting in a decrease in revenue of $3.1 million and an increase in cost of goods sold of $0.6 million.

Financial Highlights- Fiscal 2021

  • Annual revenue of $255.8 million in fiscal 2021 as compared to $228.1 million in fiscal 2020, representing an increase of 12.1%. On an adjusted basis, revenue increased to $259.3 million or 13.7%.
  • Revenue growth was driven by continued momentum in our Renewables business which was up 33.8% as compared to fiscal 2020.
  • Gross margins, excluding depreciation and amortization, declined in fiscal 2021 to 25.0% (adjusted gross margins 26.9%) as compared to 33.6% in 2020, primarily due to prior year’s government subsidies, the impact of estimate updates, and the operational factors noted above related to the fourth quarter.
  • Selling, general, and administration costs, excluding depreciation and amortization, were $51.4 million or 20.1% of revenue (19.6% on an adjusted basis) in fiscal 2021 as compared to $44.7 million or 19.6% of revenue in fiscal 2020.
  • Reported annual EBITDA of $4.6 million or 1.8% of revenue and adjusted EBITDA of $21.7 million or 8.4% of revenue as compared to $32.4 million or 14.2% of revenue in fiscal 2020 primarily due to higher government subsidies received in the prior year.

Business Highlights 2021

  • The completion of the Founder transition was followed by enhancements made to Spark’s Senior Leadership Team, bringing on experienced and operationally focused leaders to support Spark through its next stage of maturity.
  • Completed Founder-led non-brokered $5.6 million Private Placement in Growth Equity in Q2, 2021.
  • Launched Rights Offering and contemporaneous Private Placement in Q4, 2021.
    • Rights Offering and Private Placement was completed in early Q1, 2022 for aggregate subscription proceeds of approximately $39.6 million, providing Company with additional capital to execute on our operational strategy.
  • Strong and rapid growth around Renewables’ business segment in 2021, equally supported by strong transactional and long-term U.S. based demand for the development of wind, solar, and energy storage assets.
  • Expanded U.S. footprint with the launch of three new branches:
    • Bakersfield, California and Houston, Texas branches focus on technical service solutions
    • Albany, New York branch to service the northeastern market with a focus on Renewables.
  • Continued focus on the integration and progressing with the development and implementation of our integrated business processes and technology platform (“Project Darwin”) that will deliver operational standardization across Spark Power operations, North America wide.
  • Continued commitment to talent attraction and retention in the skilled trades through the $5.3 million grant from the Government of Ontario’s Skills Development Fund, which supported the launch of employee training and advancement initiatives such as enhanced on-the-job training for electricians, technicians, and apprentices; community outreach programs that promote skill trades work in Ontario; and the launch of our Be Powerful scholarship program for underrepresented students to enter the trades.

Quarterly Conference Call
Management is hosting an investor conference call and webcast tomorrow, March 31, 2022, at 8:30 a.m. ET to discuss its financial results in greater detail. To join by telephone dial: +1- 888-506-0062 (toll-free in North America) or +1- 973-528-0011 (local and international), with conference ID: 945170. To listen to a live webcast of the call, please visit the investor relations section of Spark Power’s website at An archived replay of the webcast will be available following the conclusion of the call.

Please dial in or log on 10 minutes prior to the start time to provide sufficient time to register for the event.

Spark Power’s Fourth-Quarter 2021 Interim Unaudited Condensed Consolidated Financial Statements and Notes of its Fourth-Quarter 2021 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 a leading independent provider of end-to-end electrical services, 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


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. The forward-looking statements in this press release include statements regarding the Company’s opportunities for future organic growth, margin recovery, cost reductions, improved business performance and other statements that are not historical fact, and without limitation, include statements by Messrs., Jackson and Perri regarding the success of the Company’s responses to disruptions caused by COVID-19, supply chain disruption and inflation. 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. Such factors include, among others: the ability of the Company to find a suitable strategic partner, potential buyer or participants for a financing; currency fluctuations; disruptions or changes in the credit or security markets; results of operations; and general financing; market and industry conditions. 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.


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, 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 Adjusted 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 discussion and analysis for the three-and twelve-months ended December 31, 2021. The non-IFRS measures should not be construed as alternatives to results prepared in accordance with IFRS.

Selected Consolidated Financial Information:

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

The following table is a summary of Spark Power’s results for the periods indicated:

Investor and Regulatory Inquiries:

Richard Perri, Executive Vice President & Chief Financial Officer
+1 (416) 388-4546

Media Inquiries:

Kim Samlall, Director, Marketing Communications
+1 (905) 829-3336 x185