TORONTO, ONT ARIO--(Marketwired - Oct. 14, 2015) - Enercare Inc. ("Enercare") (TSX:ECI) and Enercare Solutions Inc. ("Enercare Solutions") are providing this business update in order to outline developments in their rentals operations for the third quarter of 2015.
Unit Growth Surpasses Attrition in the Third Quarter of 2015
Enercare and Enercare Solutions are pleased to announce that for the first time since the third quarter of 2007, rental unit growth surpassed attrition*. In the third quarter of 2015, there were approximately 8,600 rental water heaters, furnaces, air conditions and other HVAC units added versus approximately 7,300 units lost. The 1,300 net unit growth is the strongest organic growth in the rental portfolio since 2005. Attrition decreased in the third quarter of 2015 over the same period in 2014 by approximately 3,900 units or 35% and by approximately 2,200 units or 23% over the second quarter of 2015. Attrition has improved year-over-year since 2009.
Rental Portfolio Revenue Growth from Additions Continues to Outpace Revenue Lost to Attrition
Augmenting this growth in rental units is the sustained favourable shift in asset mix to units with higher returns. Consistent with recent quarters, average monthly rental rates on unit additions in the third quarter were 67% higher than average monthly rental rates on units lost through attrition.
"We are excited about achieving this important milestone for Enercare. In less than a year after the acquisition of Direct Energy's home and small commercial business, and for the first time since 2007, we have achieved organic growth in our customer base." said John Macdonald, President and CEO of Enercare. "One of our key priorities for the home services business has been the growth of our portfolio and increase in the average revenue per unit." Continued Macdonald, "With the integration of the home services business progressing very well, we are extremely proud of the growth and overall progress achieved to date, particularly with this customer growth milestone being achieved a year earlier than anticipated at the time of the acquisition."
About Enercare and Enercare Solutions
Enercare and Enercare Solutions are headquartered in Toronto, Ontario and Enercare is publicly traded on the Toronto Stock Exchange (TSX:ECI). As one of Canada's largest home and commercial services and energy solutions companies with approximately 1,000 employees, Enercare and Enercare Solutions provide water heaters, furnaces, air conditioners and other HVAC rental products, plumbing services, protection plans and related services to more than 1.2 million customers. Enercare is also the largest non-utility sub-meter provider, with electricity, water, thermal and gas metering contracts for condominium and apartment suites in Ontario, Alberta and elsewhere in Canada, and through its Triacta division, a premier designer and manufacturer of advanced sub-meters and sub-metering solutions. For more information on Enercare visit enercare.ca
*Attrition is comprised of rental assets that are bought out by customers and rental assets that are replaced by competitors.
Source: Enercare Inc.