Crius Announces 2% Distribution Increase and Confirms Third Quarter 2017 Distributions

/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/

TORONTO, July 6, 2017 /CNW/ - Crius Energy Trust (the "Trust") (TSX: KWH.UN) announced today that the Board of Directors of Crius Energy Administrator Inc., the administrator of the Trust (the "Board") has approved a 2% increase to distributions paid on units of the Trust ("Units"), representing an annualized increase of $0.0158 per Unit and a total annualized distribution of $0.8043 per Unit. Accordingly, monthly distributions on Units for the third quarter of 2017 will be paid at a rate of $0.0670 per Unit, representing a 2% increase over the previous annualized distribution rate of $0.7885 per Unit.

"With the recent completion of the U.S. Gas & Electric acquisition and the expected pro-forma 59% increase in Adjusted EBITDA, 60% increase to distributable cash, and 9% reduction in the payout ratio to 53% resulting from the acquisition before accounting for synergies, the Board and Management are confident in delivering another 2% increase to our investors this quarter," commented Michael Fallquist, CEO of Crius Energy. "The acquisition materially enhances the financial profile of Crius and the Board is committed to delivering increased distributions through the remainder of 2017."

Today, the Board declared the Trust's monthly distributions on Units, each in the amount of $0.0670 per Unit, through the third quarter of 2017. Such distributions are payable for each of July 2017, August 2017 and September 2017 to unitholders of the Trust as set forth below.

Record Date

Period

Distribution Payable
Date

Distribution
Amount per Unit

July 31, 2017

July

August 15, 2017

$0.0670

August 31, 2017

August

September 15, 2017

$0.0670

September 30, 2017

September

October 16, 2017

$0.0670

 

About Crius Energy Trust

Crius provides investors with a distribution-producing investment through its indirect 100% ownership interest in Crius Energy, LLC (the "Company"). With over 1.3 million residential customer equivalents, the Company provides innovative electricity, natural gas and solar products to residential and commercial customers through exclusive partnerships and direct-to-consumer marketing channels. Our unique brands offer consumers a broad suite of energy products and services including fixed and variable contracts, renewable energy, and bundled products to support their energy needs beyond what is offered by their local utility. Company growth is achieved organically with customers acquired through our diversified marketing channels and through accretive acquisitions in the deregulated energy and solar industries, where there is a significant opportunity to participate in the consolidation of market participants. The Company currently sells energy products in 18 states and the District of Columbia with plans to continue expanding its geographic reach. The Company is well positioned to deliver capital appreciation and stable, growing distributions to investors.

The Trust intends to continue to qualify as a "mutual fund trust" under the Income Tax Act (Canada) (the "Tax Act"). The Trust will not be a "SIFT trust" (as defined in the Tax Act), provided that the Trust complies at all times with its investment restriction which preclude the Trust from holding any "non-portfolio property" (as defined in the Tax Act). Material information pertaining to the Crius may be found on SEDAR under the Trust's issuer profile at www.sedar.com or on the Trust's website at www.criusenergytrust.ca.

Cautionary Statement Regarding Forward-Looking Statements

Forward-looking statements are subject to certain risks and uncertainties, and should not be read as guarantees of future performance or results and actual results may differ materially from the conclusion, forecast or projection stated in such forward-looking statements. These risks, uncertainties and other factors include but are not limited to, the ability of the Trust to maintain a distribution on Units, the ability of Crius Energy, LLC to continue completing acquisitions and continue its organic growth strategy, Crius Energy, LLC's results of operations, financial position or cash flows, customer revenues and margins, customer additions and renewals, customer attrition, customer consumption levels, general and administrative expenses, treatment under governmental regulatory regimes, the Trust's objectives and status as a mutual fund trust and not a SIFT trust, the Trust's distributable cash and the Trust's expectations and estimates regarding the payment of distributions to Unit holders. Such assumptions, expectations, estimates, risks and uncertainties are discussed under the headings "Risk Factors" and "Special Notes to Reader – Forward-Looking Statements and Risk Factors" in the Annual Information Form of the Trust dated March 16, 2017, and under the headings "Financial Instruments and Risk Management" and "Forward-Looking Statements" in the Management's Discussion and Analysis of the Trust dated May 11, 2017. Consequently, we cannot guarantee that any forward-looking statements will materialize. Readers should not place any undue reliance on such forward-looking statements. 

Non-IFRS Financial Measures

Statements in this news release make reference to Adjusted EBITDA, distributable cash and payout ratio, which are non-IFRS financial measures commonly used by financial analysts in evaluating the financial performance of companies, including companies in the energy industry. Accordingly, Crius believes Adjusted EBITDA, Distributable Cash and payout ratio may be useful metrics for evaluating the Trust's financial performance as they are measures that Crius uses internally to assess performance, in addition to IFRS measures. As there is no generally accepted method of calculating Adjusted EBITDA, Distributable Cash and payout ratio, these terms as used herein are not necessarily comparable to similarly titled measures of other companies. Adjusted EBITDA, Distributable Cash and payout ratio have limitations as analytical tools and should not be considered in isolation from, or as an alternative to, net income (loss) or other data prepared in accordance with IFRS. Adjusted EBITDA is calculated as EBITDA adjusted to exclude any change in the fair value of derivative instruments, change in fair value of non-controlling interest, change in fair value of warrant liability, Unit-based compensation, goodwill impairment and distributions to non-controlling interest. The items excluded from Adjusted EBITDA are significant in assessing the Trust's operating results and liquidity. See the MD&A of the Trust for the three month period ended March 31, 2017 (under the heading ""Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA") for a reconciliation of Adjusted EBITDA to net loss, as calculated under IFRS for the relevant periods, the most directly comparable measure in the consolidated financial statements of the Trust. See the MD&A of the Trust for the three month period ended March 31, 2017 (under the heading "Distributable Cash and Payout Ratio") for a reconciliation of Distributable Cash to cash flows provided by operating activities as calculated under IFRS, the most directly comparable measure in the consolidated financial statements of the Trust. Other financial data has been prepared in accordance with IFRS.

SOURCE Crius Energy Trust

For further information: Michael Fallquist, Chief Executive Officer, Crius Energy Trust, (203) 663-7545; Roop Bhullar, Chief Financial Officer, Crius Energy Trust, (203) 883-9900; Kelly Castledine, Investor Relations, Crius Energy Trust, (416) 644-1753


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