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Actionable news in JE: JUST ENERGY GROUP Inc,

Just Energy Group Inc INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

The following excerpt is from the company's SEC filing.

(unaudited in thousands of Canadian dollars)

As at March 31, 2015

ASSETS

Non-current assets

Property, plant and equipment

23,856

23,815

Intangible assets

354,352

348,511

Contract initiation costs

20,440

Other non-current financial assets

Investments

Deferred tax asset

19,615

26,625

416,832

430,109

Current assets

Gas delivered in excess of consumption

17,488

Gas in storage

20,969

Trade and other receivables

395,637

459,427

Accrued gas receivables

45,992

Unbilled revenues

255,421

219,630

Prepaid expenses and deposits

43,007

22,875

Other current financial assets

Corporate tax recoverable

13,692

13,067

Restricted cash

20,955

17,462

Cash and cash equivalents

88,624

78,814

864,977

868,332

TOTAL ASSETS

1,281,809

1,298,441

DEFICIT AND LIABILITIES

Deficit attributable to equity holders of the parent

Deficit

(1,830,704

(1,828,495

Accumulated other comprehensive income

44,242

56,393

Shareholders' capital

1,066,588

1,063,423

Equity component of convertible debentures

25,795

Contributed surplus

43,657

44,062

TOTAL DEFICIT

(650,422

(638,822

Non-current liabilities

Long-term debt

685,451

676,480

Provisions

Deferred lease inducements

Other non-current financial liabilities

325,087

299,320

Deferred tax liability

1,019,296

981,962

Current liabilities

Trade and other payables

505,599

510,470

Accrued gas payable

28,944

Deferred revenue

23,915

Income taxes payable

11,579

13,152

Current portion of long-term debt

13,603

14,899

Other current financial liabilities

357,744

386,240

912,935

955,301

TOTAL LIABILITIES

1,932,231

1,937,263

TOTAL DEFICIT AND LIABILITIES

Commitments and Guarantees (Note 15)

See accompanying notes to the interim condensed consolidated financial statements

JUST ENERGY GROUP INC.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(unaudited in thousands of Canadian dollars, except where indicated and per share amounts)

Three months

Six months

September 30,

CONTINUING OPERATIONS

1,087,256

918,260

2,020,271

1,739,309

Cost of sales

920,101

785,745

1,702,209

1,483,404

GROSS MARGIN

167,155

132,515

318,062

255,905

EXPENSES

Administrative expenses

40,294

38,246

77,892

71,262

Selling and marketing expenses

65,248

53,088

128,029

108,295

Other operating expenses

24,718

27,404

49,442

52,370

130,260

118,738

255,363

231,927

Operating profit before the following

36,895

13,777

62,699

23,978

Finance costs

(17,641

(18,700

(34,497

(37,471

Change in fair value of derivative instruments

(116,786

(96,733

27,714

(128,351

Other income (loss)

(1,579

(1,854

(1,432

Profit (loss) before income taxes

(97,456

(103,235

54,062

(143,276

Provision for (recovery of) income taxes

(9,198

(8,980

12,649

(3,278

PROFIT (LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS

(88,258

(94,255

41,413

(139,998

DISCONTINUED OPERATIONS

Loss for the period from discontinued operations

(40,901

(34,072

(135,156

(174,070

Attributable to:

Shareholders of Just Energy

(91,721

(134,836

35,191

(172,405

Non-controlling interest

(1,665

Earnings (loss) per share from continuing operations available to shareholders

Diluted

Loss per share from discontinued operations

Earnings (loss) per share available to shareholders

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Profit (loss) for the period

Other comprehensive income (loss) to be reclassified to profit or loss in subsequent periods:

Unrealized gain (loss) on translation of foreign operations from continuing operations

(13,184

(12,151

(1,762

Unrealized gain on translation of foreign operations from discontinued operations

Total comprehensive income (loss) for the period

(101,441

(125,473

29,262

(174,944

Total comprehensive income (loss) attributable to:

(104,904

(125,153

23,040

(173,279

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT

FOR THE SIX MONTHS ENDED SEPTEMBER 30

ATTRIBUTABLE TO THE SHAREHOLDERS

Accumulated earnings

Accumulated earnings (deficit), beginning of period

(230,567

216,218

Profit (loss) for the period, attributable to shareholders

Accumulated earnings (deficit), end of period

(195,376

43,813

DIVIDENDS

Dividends, beginning of period

(1,597,928

(1,511,205

(37,400

(49,555

Dividends, end of period

(1,635,328

(1,560,760

(1,516,947

ACCUMULATED OTHER COMPREHENSIVE INCOME

Accumulated other comprehensive income, beginning of period

71,997

Other comprehensive loss

Accumulated other comprehensive income, end of period

71,123

SHAREHOLDERS' CAPITAL

Shareholders' capital, beginning of period

1,033,557

Share-based compensation awards exercised

14,034

Dividend reinvestment plan

Shareholders' capital, end of period

1,049,907

EQUITY COMPONENT OF CONVERTIBLE DEBENTURES

Balance, beginning of period

Balance, end of period

CONTRIBUTED SURPLUS

65,569

Add: Share-based compensation awards

Non-cash deferred share grant distributions

Less: Share-based compensation awards exercised

(3,165

(14,034

55,851

NON-CONTROLLING INTEREST

Foreign exchange impact on non-controlling interest

Distributions to non-controlling shareholders

(6,222

(2,171

Profit (loss) attributable to non-controlling interest

(311,594

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited in thousands of Canadian dollars)

Net inflow of cash related to the following activities

September 30, 2015

September 30, 2014

OPERATING

Income (loss) before income taxes

Items not affecting cash

Amortization of intangible assets

and related supply contracts

19,228

Amortization of contract initiation costs

15,548

15,645

Amortization of property, plant and equipment

Amortization included in cost of sales

Share-based compensation

Financing charges, non-cash portion

Change in fair value of derivative instruments

(27,714

Cash inflow from operating activities of discontinued operations

11,879

13,360

132,738

134,403

190,576

Adjustment required to reflect net cash receipts from gas sales

11,848

13,635

20,231

19,164

Net change in non-cash working capital balances

(31,365

(19,973

(7,250

(50,424

15,765

24,830

76,455

16,040

Income taxes paid

(6,764

(2,114

15,418

24,186

69,691

13,926

INVESTING

Purchase of property, plant and equipment

(1,594

(2,641

(2,251

Purchase of intangible assets

(3,339

(2,586

(5,579

(3,095

(7,956

(15,466

Cash outflow from investing activities of discontinued operations

(10,329

(9,667

(4,933

(21,371

(8,220

(30,479

FINANCING

Dividends paid

(18,685

(17,618

(37,362

(47,198

Issuance of long-term debt

88,607

215,777

Repayment of long-term debt

(3,257

(64,500

(4,458

(124,500

(3,426

Debt issuance costs

(3,518

Distributions to minority shareholder

(3,463

(2,307

Cash outflow from financing activities of discontinued operations

(2,395

(13,621

Cash inflow (outflow) from financing activities

(32,349

(54,986

27,917

Effect of foreign currency translation on cash balances

Net cash inflow (outflow)

(16,464

11,355

Cash and cash equivalents reclassified to assets held for sale

(1,935

Cash and cash equivalents, beginning of period

105,088

25,105

20,401

Cash and cash equivalents, end of period

29,821

Supplemental cash flow information:

Interest paid

13,867

26,318

30,329

29,764

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2015

(unaudited in thousands of Canadian dollars, except where indicated and per share amounts)

1.

ORGANIZATION

Just Energy Group Inc. ("JEGI", "Just Energy" or the "Company") is a corporation established under the laws of Canada to hold securities and to distribute the income of its directly or indirectly owned operating subsidiaries and affiliates. The registered office of Just Energy is First Canadian Place, 100 King Street West, Toronto, Ontario, Canada. The interim condensed consolidated financial statements consist of Just Energy and its subsidiaries and affiliates. The interim condensed consolidated financial statements were approved by the Board of Directors on November 12, 2015.

Just Energy's business involves the sale of natural gas and/or electricity to residential and commercial customers under long-term fixed-price, price-protected or variable-priced contracts. Just Energy markets its gas and electricity contracts in Canada, the United States and the United Kingdom under the following trade names: Just Energy, Hudson Energy, Commerce Energy, Amigo Energy, Tara Energy, Green Star Energy, JE Solar and TerraPass. By fixing the price of natural gas or electricity under its fixed-price or price-protected program contracts for a period of up to five years, Just Energy's customers offset their exposure to changes in the price of these essential commodities. Variable rate products allow customers to maintain competitive rates while retaining the ability to lock into a fixed price at their discretion. Just Energy derives its margin or gross profit from the difference between the price at which it is able to sell the commodities to its customers and the related price at which it purchases the associated volumes from its suppliers.

In addition, Just Energy markets smart thermostats, offering the thermostats as a stand-alone unit or bundled with certain commodity products.

Just Energy also offers green products through its JustGreen program. The JustGreen electricity product offers customers the option of having all or a portion of their electricity sourced from renewable green sources such as wind, run of the river hydro or biomass. The JustGreen gas product offers carbon offset credits that allow customers to reduce or eliminate the carbon footprint of their homes or businesses. Additional green products allow customers to offset their carbon footprint without buying energy commodity products and can be offered in all states and provinces without being dependent on energy deregulation.

Just Energy markets its product offerings through a number of sales channels including door-to-door marketing, broker and affinity relationships, and online marketing. The online marketing of gas and electricity contracts is primarily conducted through Just Ventures LLC and Just Ventures L.P. (collectively, "Just Ventures"), a joint venture in which Just Energy holds a 50% equity interest. Just Energy has also entered into a partnership to act as an originator of residential solar deals that are financed and installed by Clean Power Finance.

SIGNIFICANT ACCOUNTING POLICIES

Statement of compliance

These interim condensed consolidated financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting, as issued by the International Accounting Standards Board ("IASB"). Accordingly, certain informa-tion and footnote disclosures normally included in annual financial statements prepared in accordance with International Financial Reporting Standards ("IFRS"), as issued by the IASB, have been omitted or condensed.

Basis of presentation and interim reporting

These interim condensed consolidated financial statements should be read in conjunction with and follow the same accounting policies and methods of application as those used in the audited consolidated financial statements for the years ended March 31, 2015 and 2014.

The interim condensed consolidated financial statements are presented in Canadian dollars, the functional currency of Just Energy, and all values are rounded to the nearest thousand.

The interim operating results are not necessarily indicative of the results that may be expected for the full year ending March 31, 2016, due to seasonal variations resulting in fluctuations in quarterly results. Gas consumption by customers is typically highest in October through March and lowest in April through September. Electricity consumption is typically highest in January through March and July through September. Electricity consumption is lowest in October through December and April through June. For the 12 months ended September 30, 2015, Just Energy reported gross margin of $662,226 (2014 - $541,987) and loss of $394,966 (2014 – profit of $181,946).

Principles of consolidation

The interim condensed consolidated financial statements include the accounts of Just Energy and its directly or indirectly owned subsidiaries and affiliates as at September 30, 2015. Subsidiaries and affiliates are consolidated from the date of acquisition and control, and continue to be consolidated until the date that such control ceases. The financial statements of the subsidiaries and affiliates are prepared for the same reporting period as Just Energy, using consistent accounting policies. All intercompany balances, sales, expenses and unrealized gains and losses resulting from intercompany transactions are eliminated on consolidation.

ACCOUNTING STANDARDS ISSUED BUT NOT YET APPLIED

The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the interim condensed consolidated financial statements are disclosed below. Just Energy intends to adopt these standards, if applicable, when they become effective.

IFRS 9, Financial Instruments ("IFRS 9")

was issued by the IASB on July 24, 2014, and will replace IAS 39. IFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost or fair value, replacing the multiple rules in IAS 39. The approach in IFRS 9 is based on how an entity manages its financial instruments in the context of its business model and the contractual cash flow characteristics of the financial assets. Two measurement categories continue to exist to account for financial liabilities in IFRS 9, fair value through profit or loss ("FVTPL") and amortized cost. Financial liabilities held for trading are measured at FVTPL, and all other financial liabilities are measured at amortized cost unless the fair value option is applied. The treatment of embedded derivatives under the new standard is consistent with IAS 39 and is applied to financial liabilities and non-derivative hosts not within the scope of the standard. IFRS 9 also uses a new model for hedge accounting aligning the accounting treatment with risk management activities. IFRS 9 is effective for annual periods beginning on or after January 1, 2018. Management is currently evaluating the impact of IFRS 9 on the condensed consolidated financial statements.

IFRS 11, Amendments to IFRS 11 ("IFRS 11") Accounting for Acquisition of Interest

requires an entity acquiring an interest in a joint operation in which the activity of the joint operation constitutes a business to apply, to the extent of its share, all of the principles on business combination accounting in IFRS 3, Business Combinations, and other IFRSs, that do not conflict with the requirements of IFRS 11. Furthermore, entities are required to disclose the information required in those IFRSs in relation to business combinations. The amendments also apply to an entity on the formation of a joint operation if, and only if, an existing business is contributed by the entity to the joint operation on its formation. The amendments also clarify that for the acquisition of an additional interest in a joint operation in which the activity of the joint operation constitutes a business; previously held interests in the joint operation must not be remeasured if the joint operator retains joint control. These amendments are effective for annual periods beginning on or after January 1, 2016, with early adoption permitted. The Company does not expect this standard to have any impact on the condensed consolidated financial statements.

IFRS 15, Revenue Recognition ("IFRS 15")

establishes a five-step model that will apply to revenue earned from a contract with a customer, regardless of the type of revenue transaction or industry. The standard will also provide guidance on the recognition and measurement of gains and losses on the sale of some non-financial assets that are not an output of the entity's ordinary activities. The standard also outlines increased disclosures that will be required, including disaggregation of total revenue, information about performance obligations, changes in contract asset and liability account balances between periods and key judgments and estimates made. IFRS 15 is effective for annual periods beginning on or after January 1, 2018. Management is currently evaluating the impact of IFRS 15 on the condensed consolidated financial statements.

IAS 16 and IAS 38, Property, Plant and Equipment and Intangible Assets ("IAS 16 and 38") Clarification of Acceptable Methods of Depreciation

and Amortization

clarify the principle in IAS 16 and 38 that revenue reflects a pattern of economic benefits that are generated from operating a business (of which the asset is part) rather than the economic benefits that are consumed through use of the asset. As a result, a revenue-based method cannot be used to depreciate property, plant and equipment and may only be used in very limited circumstances to amortize intangible assets. These amendments are effective for annual periods beginning on or after January 1, 2016, with early adoption permitted. Just Energy does not expect these amendments to have any impact on the condensed consolidated financial statements.

National Home Services

On November 24, 2014, Just Energy closed the sale of 100% of its shares in National Home Services ("NHS") to Reliance Comfort Limited Partnership. The purchase price was $505,000, reduced by the outstanding debt balances, early termination charges and the settlement of the royalty.

The results of NHS are presented below:

For the three months

For the six months

ended September 30, 2014

21,237

41,947

Gross margin

19,396

35,124

Expenses

Administrative, selling and operating expenses

13,977

24,795

Operating income

(5,242

(10,565

Profit (loss) from discontinued operations before income taxes

Provision for income taxes

LOSS FOR THE PERIOD FROM DISCONTINUED OPERATIONS

(8,131

(8,385

Basic and diluted loss per share from discontinued operations

Commercial Solar

On November 5, 2014, Just Energy announced that it had closed the sale of its shares of Hudson Solar Corp. ("HES"), its...


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