Eight consecutive quarters of year-over-year improvement in customer retention
5,000 sub-metering units contracted in the quarter
TORONTO, ONTARIO--(Marketwired - July 10, 2014) - EnerCare Inc. ("EnerCare") (TSX:ECI) and EnerCare Solutions Inc. ("EnerCare Solutions") are providing this business update in order to outline developments in their operations for the second quarter of 2014 and year-to-date.
Rental Attrition Continues to Decrease
EnerCare and EnerCare Solutions continued to experience improved customer retention, with attrition, comprising assets that are bought out by customers and assets that are replaced by competitors ("Attrition"), decreasing in the second quarter of 2014 by approximately 3,000 units or 21% and by approximately 5,000 units or 20% year-to-date over the same periods in 2013. Attrition has improved year-over-year since 2009 and for eight consecutive quarters year-over-year.
Rental Portfolio Revenue Growth from Additions Outpaces Revenue Lost to Attrition
EnerCare and EnerCare Solutions' overall revenue in the rental portfolio was moderately higher in the second quarter of 2014 and year-to-date over the same periods in 2013, driven largely by a continuing favourable shift in asset mix to units with higher returns. Average monthly rental rates on additions in the second quarter and year-to-date were $10.87 or 70.7% an d $11.63 or 73.8%, respectively, higher than average monthly rental rates on units lost through Attrition, an increase of $4.19 or 62.8% and $5.60 or 92.8%, respectively, over the same periods in 2013.
Sub-metering Sales Activity Remain Strong
Sales in EnerCare's sub-metering business remain strong, with approximately 5,000 sub-metering units contracted in the second quarter of 2014 and approximately 12,000 units contracted year-to-date, compared to approximately 2,000 units and approximately 5,000 units, respectively, for the same periods in 2013.
ABOUT ENERCARE INC. AND ENERCARE SOLUTIONS INC.
EnerCare and EnerCare Solutions own a portfolio of approximately 1.1 million installed water heaters and other assets, rented primarily to residential customers in Ontario. EnerCare also owns EnerCare Connections Inc., a leading sub-metering company, with metering contracts for condominium and apartment suites in Ontario, Alberta and elsewhere in Canada.