Press release from CNW Group
Crius Energy Trust Announces February 2014 Distribution
Monday, February 10, 2014
Crius Energy Trust Announces February 2014 Distribution07:00 EST Monday, February 10, 2014
A conference call with Management will be held on Monday, February 10, 2014 at 8:30 a.m. ET
Call in number: 1-888-231-8191 or 647-427-7450
/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/
TORONTO, Feb. 10, 2014 /CNW/ - Crius Energy Trust (TSX: KWH.UN) ("Crius Energy" or the "Trust"), announced today that it has confirmed its February 2014 distribution of $0.0583 per unit, a 30% reduction from that paid in previous months. The distribution will be paid on March 17, 2014, in respect of the period from and including February 1, 2014 to February 28, 2014, to unitholders of record on February 28, 2014. The ex-distribution date will be February 26, 2014.
The Trust expects to maintain the monthly distribution level of $0.0583 per unit throughout 2014, which will be reviewed by the Board of Trustees at year end. The distribution reduction applies to both unitholders of Crius Energy Trust and Crius Energy LLC.
"Reducing the distribution is a difficult choice but we feel that this action must be taken to strengthen our business for the long-term benefit of our unitholders," said Michael Fallquist, President and CEO of Crius Energy Trust. "Record-breaking energy prices and volatility in the first quarter, driven by historic cold temperatures and natural gas supply constraints, have made this decision necessary."
"The reduction will enable us to rebuild the capital required for the Trust's long-term success and manage through the temporary slowdown in net customer growth as the Company passes through higher variable rates to customers," commented Mr. Fallquist. "Concurrently we will redouble our focus on controlling expenses and maintaining lean, efficient operations while continuing to diversify our business geographically and by expanding solar and natural gas sales. Furthermore, we will also consider ways to enhance unitholder value, including unit buybacks."
A conference call will be held with management at 8:30 am today, Monday February 10. 2014. Call-in numbers are 1-888-231-8191 (North America toll-free) or 647-427-7450 (Toronto local).
A replay of the conference call may be accessed from 11:30 a.m. today until Monday February 17, 2014 at midnight. Call-in number is 1-855-859-2056 and password is 81338141.
About Crius Energy
Crius Energy has a 26.8% ownership interest in Crius Energy LLC. With approximately 610,000 residential customer equivalents, Crius Energy LLC is one of the largest independent energy retailers operating in the United States, serves residential and small to medium-size commercial customers and markets its products through a variety of sales channels and brand names. Crius Energy LLC currently sells electricity in 11 states and the District of Columbia, natural gas in seven states and the District of Columbia and solar energy products and services in six states.
Crius Energy intends 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 precludes the Trust from holding any "non-portfolio property" (as defined in the Tax Act). Material information pertaining to Crius Energy may be found on www.sedar.com or www.criusenergytrust.ca.
This news release contains forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Crius Energy, including, without limitation, those listed under "Risk Factors" and "Forward-Looking Statements" in Crius Energy's Annual Information Form dated March 28, 2013 (collectively, "forward-looking information"). Forward-looking information in this news release includes, but is not limited to, Crius Energy's objectives and status as a mutual fund trust and not a SIFT trust, 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, distributable cash and Crius Energy's expectations and estimates regarding the payment of distributions to unitholders. Crius Energy cautions investors of Crius Energy's securities about important factors that could cause Crius Energy's actual results to differ materially from those projected in any forward-looking statements included in this news release. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. No assurance can be given that the expectations set out in this news release will prove to be correct and accordingly, prospective investors should not place undue reliance on these forward-looking statements. These statements speak only as of the date of this news release and Crius Energy does not assume any obligation to update or revise them to reflect new events or circumstances.
SOURCE Crius Energy Trust
For further information:
Chief Executive Officer
Chief Financial Officer
(416) 815-0700 ext. 290