May 30, 2017 - 6:35 PM EDT
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ONEnergy inc. Reports Q1 2017 Results. Quarterly Revenues Increase 43 Percent to $11.6 million

(via TheNewswire)

TORONTO, CANADA / TheNewswire / May 30, 2017 - ONEnergy Inc. ("ONEnergy" or the "Company") (TSXV: OEG), a dynamic energy management firm serving commercial, industrial, multi-residential and residential customers in Canada and the U.S. via its ONEnergy(TM) and Sunwave(TM)-branded energy and energy-efficiency businesses today announced its financial results as at and for the three-month period ended March 31, 2017. All amounts are in Canadian dollars unless otherwise noted.

For the three-month period ended March 31, 2017, revenues from continuing operations increased by 43 percent to $11.6 million versus $8.1 million during the corresponding period in 2016. Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") loss, and loss from continuing operations showed improvement at $1.4 million and $2.6 million, respectively, compared to Adjusted EBITDA loss of $1.5 million and net income from continuing operations of $4.2 million during Q1 2016. Net income from operations during Q1 2016 included the proceeds from a $7.2 million legal settlement.

Cash and restricted cash as at March 31, 2017 totaled $5.3 million.

"Our Gas & Power business continue to see net new customer additions with strong revenue growth, however our margins were impacted by competition and utility default rates lagging the market", said Stephen J.J. Letwin, Chairman of ONEnergy. "We saw strong momentum in our Energy Efficiency business in the first quarter as they completed four projects and had three projects in progress exiting the quarter. We also received orders for a further three facilities from a large consumer products customer and we anticipate receiving further orders from this customer as this customer plans to upgrade most of their Canadian facilities to high-efficiency lighting."

The Company continues to perform due diligence and negotiate a definitive agreement (the "Definitive Agreement") which will set forth the detailed terms of its transaction (the "Transaction") (previously announced on December 21, 2016 and updated on January 20, 2017, February 17, 2017, March 13, 2017 and on May 8, 2017) to acquire all the outstanding shares of OZZ Electric Inc., and containing the terms and conditions set out in the letter of intent and such other terms and conditions as are customary for transactions of the nature and magnitude of the Transaction. Completion of the Transaction would result in a reverse takeover and change of business of the Company under the policies of the Exchange. The Company will provide a further update on the Transaction in due course.

Commencing on April 10, 2017, the Ontario Superior Court (the "Court") heard the Company's claim against its former CEO Gerald McGoey and his personal service company Jolian Investments Limited (collectively the "McGoey Defendants"). The claim against the McGoey Defendants is for up to a maximum of approximately $5.6 million (being the amounts they received from ONEnergy's predecessor Look Communications Inc. ('Look")) plus the McGoey Defendants' proportionate and several shares of amounts paid by Look as advances to law firms for the payment of legal fees and expenses. The trial concluded on May 23, 2017 and the Court took the matter under reserve. The Company expects a decision within the next six months.

About ONEnergy Inc.

ONEnergy is a dynamic energy management firm serving commercial, industrial, multi-residential and residential clients via its ONEnergy(TM) and Sunwave(TM)-branded energy and energy-efficiency businesses. ONEnergy specializes in helping customers use energy more wisely by minimizing their energy consumption and then cost-effectively managing the balance. We provide a variety of products and services including energy-efficient heating, cooling and air-conditioning equipment, standalone and solar PV-integrated energy storage systems, complete turnkey high efficiency lighting for retrofits and new construction, energy management software and monitoring, supply of conventional and "green" electricity for homes and businesses, commercial solar PV installations, energy audits and more to help our customers conserve, simplify and effectively manage their energy usage and costs.

ONEnergy serves customers in both Canada and the United States, with offices in Toronto and Stamford, CT. ONEnergy common shares are listed on the Exchange under the symbol "OEG".

Material information about ONEnergy can be found on SEDAR under the Company's issuer profile at www.sedar.com. ONEnergy's corporate website may be found at www.onenergyinc.com and you can learn more about Sunwave's offerings at www.gosunwave.com.

For additional information please contact:

Stephen J.J. Letwin Ray de Ocampo

Chairman Chief Financial Officer

ONEnergy Inc. ONEnergy Inc.

[email protected] [email protected]

+1 (416) 444-4848 +1 (647) 253-2534

Beverly Brooks

Brooks Communications

[email protected]

+1 (416) 546-2336

The corporate information contained in this release includes forward-looking statements regarding future events and the future performance of ONEnergy and its subsidiaries that involve risks and uncertainties that could cause actual results to differ materially. Assumptions used in the preparation of such information, although considered reasonable by ONEnergy at the time of preparation, may prove to be incorrect. The actual results achieved may vary from the information provided herein and the variations may be material. Consequently, there is no representation by ONEnergy that actual results achieved will be the same, in whole or in part, as those forecast.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Copyright (c) 2017 TheNewswire - All rights reserved.


Source: TheNewsWire (May 30, 2017 - 6:35 PM EDT)

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