TORONTO, ON–(Marketwired – June 09, 2016) –

NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR DISSEMINATION IN THE UNITED STATES

Enercare Inc. (“Enercare”) (TSX: ECI) will be hosting an investor day for analysts and Canadian investors this afternoon in Toronto. All amounts are in Canadian dollars unless otherwise noted.

“We have transformed into a North American home and commercial services company with an enhanced platform for growth,” stated John Macdonald, President and Chief Executive Officer. “With nearly 100 locations across Canada and the United States, we are a market leader in home comfort. We are targeting initiatives that we expect will expand our long-term customer base and deliver shareholder value.”

At the event, Enercare will be discussing its estimated cost and tax efficiencies arising from the acquisition of Service Experts, its growth strategy and its estimated 2016 capital expenditure profile. Management’s discussions will include the following:

Growth Initiatives

• Growth initiatives focused on expanding service offerings, geographic expansion and a disciplined approach to acquisitions.

Acquisition Cost Synergies

• Cost synergies relating to the acquisition of Service Experts are estimated to be in the range of $0.05 to $0.08 per common share on an annualized basis by the end of 2017 primarily as a result of a reduction in sourcing costs.

Sub-metering

• As of March 31, 2016, Enercare’s sub-metering division had approximately 213,000 contracted units. Enercare estimates that there are between 300,000 and 400,000 rental and condominium units in Ontario that remain unmetered.
• Enercare is considering the feasibility of introducing its sub-metering business in certain targeted markets. Factors being considered include economics and the regulatory environment.

2016 Income Taxes

• The Service Experts transaction was structured to permit Enercare to “step up” the tax basis of Service Experts’ assets in the United States through a “338 election” under US tax rules. Enercare estimates the resulting tax shelter value to be approximately US$65 million on a net present value basis. This tax shelter is estimated to result in a reduction of US income taxes of approximately $24 million to $28 million per year for the next 15 years.
• Enercare is assessing corporate expenses expected to be incurred in Canada to manage and benefit the US operations of Service Experts, which Enercare estimates will result in a favourable expense reimbursement of between $2 million and $5 million per year.
• In November, Enercare provided a range for current 2016 Canadian income taxes of $46 million to $53 million, and is currently assessing the impact of the acquisition of Service Experts on this range. Enercare expects to provide updated information when it reports its results for the second quarter ending June 30, 2016.

2016 Capital Investments

• Enercare is targeting a range of between $111 million and $157 million in capital investments in 2016, excluding Service Experts. Management targets an Internal Rate of Return (IRR) from capital investments in its core businesses of between 15% and 20%. Actual IRRs achieved in 2015 are as outlined in the table below.

1. Excludes acquisitions.
2. The target range of capital spend for Home Service is largely based on the number and type of equipment originated (assumed to be approximately 25,000 water heater and water treatment rental additions, 50,000 water heater exchanges and 10,000 HVAC rental additions) and the mix between rental, sales and financing arrangements similar to actual results experienced in the last 6 months of operations. The target range for capital spend in Sub-metering is based on the number and type of metering equipment installed during the year assumed to be approximately 17,000 units. Corporate capital includes IT software and hardware, furniture and fixtures and other capital projects. The building relates to a new head office to be purchased in Q2 of 2016.
3. Based on 2015 actual average revenue and cost of goods sold per unit and sales, general and administration (“SG&A”) expenses which were allocated based on the number of incidents or number of active units, depending on the nature of the expense, over a useful life of 16 years, with revenue price increases of 2.5% per year and expense inflation assumed at 2.25% per year and with a tax rate of 26.5%.
4. Based on 2015 actual contracted sales and their respective net revenue per suite, capital cost per suite and based on actual average SG&A costs per billable service for 2015, over an initial meter seal period of 10 years, a contract length of 18 years, an expense inflation rate of 2.25% per year, price increase inflation of 2.5% per year and with a tax rate of 26.5%.

About Today’s Investor Day

Canadian investors wishing to listen to the teleconference may access the live webcast as follows:

Date and Time: Thursday, June 9, 2016 from 2:00 p.m. to 4:30 p.m. (ET)

By Telephone: 647.788.4922 or 1.877.223.4471

Please allow 10 minutes to be connected to the conference call.

Webcast: www.gowebcasting.com/7585 Note: this is a listen-only audio webcast. Media Player or Real Player is required to listen to the broadcast.

Note: A slide presentation intended for simultaneous viewing with the conference call will be available the afternoon of Thursday, June 9, 2016 at: www.enercareinc.com and on SEDAR at www.SEDAR.com.

About Enercare

Enercare is headquartered in Toronto, Ontario, Canada and is publicly traded on the Toronto Stock Exchange (TSX: ECI). As one of North America’s largest home and commercial services and energy solutions companies with approximately 3,800 employees under its Enercare and Service Experts brands, Enercare is a leading provider of water heaters, water treatment, furnaces, air conditioners and other HVAC rental products, plumbing services, protection plans and related services. With operations in Canada and the United States, Enercare serves approximately 1.6 million customers annually. Enercare is also the largest non-utility sub-meter provider, with electricity, water, thermal and gas metering contracts for condominium and apartment suites in Canada and through its Triacta brand, a premier designer and manufacturer of advanced sub-meters and sub-metering solutions.

For more information on Enercare visit enercare.ca. Additional information regarding Enercare is available on SEDAR at www.sedar.com or through Enercare’s investor relations website at www.enercareinc.com or www.enercare.ca.

Cautionary Note Regarding Forward-Looking Information

This news release contains forward-looking information within the meaning of applicable Canadian securities laws (“forward-looking statements”). Statements other than statements of historical fact contained in this news release may be forward-looking statements, including, without limitation, management’s expectations, intentions and beliefs concerning anticipated future events, results, circumstances, economic performance or expectations with respect to Enercare, including Enercare’s business operations, business strategy and financial condition. Forward-looking statements may include words such as “anticipates”, “believes”, “budgets”, “could”, “estimates”, “expects”, “goal”, “intends”, “may”, “outlook”, “plans”, “strive”, “target” and “will”, although not all forward-looking statements contains these words.

These forward-looking statements may reflect the internal projections, expectations, future growth, results of operations, performance, business prospects and opportunities of Enercare and are based on information currently available to Enercare and/or assumptions that Enercare believes are reasonable. Actual results and developments may differ materially from results and developments discussed in the forward-looking statements, as they are subject to a number of risks and uncertainties. In developing these forward-looking statements, certain material assumptions were made. These forward-looking statements are also subject to certain risks. These factors include, but are not limited to:

• actual future market conditions being different than anticipated by management; and
• the failure to realize the anticipated benefits of the acquisition of Service Experts, strategic initiatives and tax efficiencies.

Material factors or assumptions that were applied to drawing a conclusion or making an estimate set out in forward-looking statements include:

• the view of management regarding current and anticipated market conditions;
• industry trends remaining unchanged;
• the financial and operating attributes of Enercare and Service Experts as at the date hereof and the anticipated future performance of Enercare and Service Experts;
• assumptions regarding foreign exchange rates, income tax rates and commodity prices;
• the extent to which the Service Experts acquisition is accretive, which may be impacted by the realization and timing of synergies and the operating performance of Enercare and Service Experts;
• assumptions regarding the volume and mix of business activities remaining consistent with current trends;
• assumptions regarding non-recurring transaction costs estimated to be incurred by Enercare in connection with the Service Experts acquisition;
• assumptions regarding future selling, general and administration costs estimated to be incurred by Enercare, including in connection with the running of Service Experts; and
• the number of common shares outstanding remaining constant.

Readers are cautioned that this list of material factors or assumptions is not exhaustive. Although forward-looking statements contained in this news release are based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. Accordingly, readers should not place undue reliance on such forward-looking statements and assumptions as management cannot provide assurance that actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Enercare. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed in Enercare’s most recently filed Management’s Discussion and Analysis and in its current Annual Information Form. These forward-looking statements are subject to change as a result of new information, future events or other circumstances in which case they will only be updated by Enercare where required by law. These forward looking statements speak as of the date of this news release.

For further information please contact:
Evelyn Sutherland
CFO
1.416.649.1860
[email protected]