Equity (Tables)

3 Months Ended

Mar. 31, 2017

Schedule of Ownership Interests Percentage

The Company and NuDevco Retail and Retailco owned the following economic interests in Spark HoldCo at December 31, 2016 and March 31, 2017, respectively.

Non-controlling Interest Economic Interest



	The Company		NuDevco Retail and Retailco^{(1) (2)}
December 31, 2016	38.85	%	61.15	%
March 31, 2017	37.70	%	62.30	%

(1) In January 2016, Retailco succeeded to the interest of NuDevco Retail Holdings of its Class B common stock and an equal number of Spark HoldCo units it held pursuant to a series of transfers.

(2) In January 2017, Retailco converted the CenStar Note and Oasis Note into 134,731 and 383,090 shares, respectively, of Class B common stock.

Schedule of Noncontrolling Interest

The following table summarizes the portion of net income and income tax expense (benefit) attributable to non-controlling interest (in thousands):



	Three Months Ended March 31,
	2017			2016

Net income allocated to non-controlling interest	$	8,660		$	12,008
Income tax expense (benefit) allocated to non-controlling interest	(457		)	440
Net income attributable to non-controlling interest	$	9,117		$	11,568

Earnings Per Share

The following table presents the computation of earnings per share for the three months ended March 31, 2017 and 2016 (in thousands, except per share data):



	Three Months Ended March 31,
	2017		2016
Net income attributable to Spark Energy, Inc. stockholders	$	2,269	$	4,173
Less: Accumulated dividend on Series A preferred stock	$	183	$	—
Net income attributable to stockholders of Class A common stock ⁽²⁾	$	2,086	$	4,173

Basic weighted average Class A common shares outstanding	6,498		3,756
Basic EPS attributable to stockholders	$	0.32	$	1.11

Net income attributable to stockholders of Class A common stock ⁽²⁾	$	2,086	$	4,173
Effect of conversion of Class B common stock to shares of Class A common stock	—		6,094
Effect of conversion of convertible subordinated notes into shares of Class B common stock and shares of Class B common stock into shares of Class A common stock ⁽¹⁾	—		(413		)
Diluted net income attributable to stockholders of Class A common stock	2,086		9,854

Basic weighted average Class A common shares outstanding	6,498		3,756
Effect of dilutive Class B common stock	—		10,113
Effect of dilutive convertible subordinated notes into shares of Class B common stock and shares of Class B common stock into shares of Class A common stock ⁽¹⁾	—		493
Effect of dilutive restricted stock units	136		158
Diluted weighted average shares outstanding	6,634		14,520

Diluted EPS attributable to stockholders	$	0.31	$	0.68

(1) The CenStar Note and Oasis Note converted into 134,731 and 383,090 shares of Class B common stock on January 8, 2017, and January 31, 2017, respectively.

Carrying Amounts and Classification of Assets and Liabilities of Variable Interest Entity

The following table includes the carrying amounts and classification of the assets and liabilities of Spark HoldCo that are included in the Company's condensed consolidated balance sheet as of March 31, 2017 (in thousands):



	March 31, 2017
Assets
Current assets:
Cash and cash equivalents	$	24,784
Accounts receivable	108,754
Other current assets	57,997
Total current assets	191,535
Non-current assets:
Goodwill	79,407
Other assets	40,392
Total non-current assets	119,799
Total Assets	$	311,334

Liabilities
Current liabilities:
Accounts payable and Accrued Liabilities	$	77,633
Intercompany payable with Spark Energy, Inc.	37,636
Current portion of Senior Credit Facility	22,236
Contingent consideration	12,103
Other current liabilities	7,170
Total current liabilities	156,778
Long-term liabilities:
Contingent consideration	4,083
Other long-term liabilities	4,964
Total long-term liabilities	9,047
Total Liabilities	$	165,825

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details