Press Releases – Page 2 – Via Renewables

Via Renewables, Inc. Announces Dividend on Preferred Stock

Posted on January 17, 2024 by Travis Biedenbender

HOUSTON, January 17, 2024 (ACCESSWIRE) – Via Renewables, Inc. (“Via Renewables” or the “Company”) (NASDAQ: VIA; VIASP), an independent retail energy services company, announced today that, in accordance with the terms of the 8.75% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock (“Series A Preferred Stock”) of the Company, the Board of Directors has declared a quarterly cash dividend in the amount of $0.75960 per share on the Series A Preferred Stock. The dividend will be paid on April 15, 2024 to holders of record of Via Renewables’ Series A Preferred Stock on April 1, 2024. The floating rate period for the Series A Preferred Stock began on April 15, 2022.

In accordance with the Adjustable Interest Rate (LIBOR) Act (the “LIBOR Act”) and the final regulations promulgated pursuant thereto by the Board of Governors of the Federal Reserve System (“Board”), the LIBOR Act specifies that the replacement benchmark rate on the Series A Preferred Stock following Three-Month LIBOR’s end of publication on June 30, 2023 is Three-Month CME Term SOFR, as administered by CME Group Benchmark Administration, Ltd. (or any successor administrator), plus a tenor spread adjustment of 0.26161%.

The Company previously elected to suspend its common stock dividend.

About Via Renewables, Inc.

Via Renewables, Inc. is an independent retail energy services company founded in 1999 that provides residential and commercial customers in competitive markets across the United States with an alternative choice for their natural gas and electricity under our well-established and well-regarded brands, including Spark Energy, Major Energy, Provider Power, and Verde Energy. Headquartered in Houston, Texas, Via Renewables currently operates in 20 states and serves 105 utility territories. Via Renewables offers its customers a variety of product and service choices, including stable and predictable energy costs and green product alternatives.

We use our website as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Investors should note that new materials, including press releases, updated investor presentations, and financial and other filings with the Securities and Exchange Commission are posted on the Via Renewables Investor Relations website at ViaRenewables.com. Investors are urged to monitor our website regularly for information and updates about the Company.

Cautionary Note Regarding Forward Looking Statements

This press release contains forward-looking statements that are subject to a number of risks and uncertainties, many of which are beyond our control. These forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), can be identified by the use of forward-looking terminology including “may,” “should,” “could,” “likely,” “will,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “plan,” “intend,” “project,” or other similar words. All statements, other than statements of historical fact, included in this press release are forward-looking statements. The forward-looking statements include statements regarding the impacts of Winter Storm Uri, cash flow generation and liquidity, business strategy, prospects for growth and acquisitions, outcomes of legal proceedings, the timing, availability, ability to pay and implied amount of cash dividends and distributions on our Class A common stock and Series A Preferred Stock, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans, objectives, beliefs of management, availability and terms of capital, competition, government regulation and general economic conditions. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we cannot give any assurance that such expectations will prove correct.

The forward-looking statements in this press release are subject to risks and uncertainties. Important factors that could cause actual results to materially differ from those projected in the forward-looking statements include, but are not limited to:

our ability to remediate the material weakness in our internal control over financial reporting, the identification of any additional material weakness in the future or otherwise failing to maintain an effective system of internal controls;
the ultimate impact of Winter Storm Uri, including future benefits or costs related to ERCOT market securitization efforts, and any corrective action by the State of Texas, ERCOT, the Railroad Commission of Texas, or the Public Utility Commission of Texas;
changes in commodity prices, the margins we achieve, and interest rates;
the sufficiency of risk management and hedging policies and practices;
the impact of extreme and unpredictable weather conditions, including hurricanes, heat waves, and other natural disasters;
federal, state and local regulations, including the industry’s ability to address or adapt to potentially restrictive new regulations that may be enacted by public utility commissions;
our ability to borrow funds and access credit markets;
restrictions and covenants in our debt agreements and collateral requirements;
credit risk with respect to suppliers and customers;
our ability to acquire customers and actual attrition rates;
changes in costs to acquire customers;
accuracy of billing systems;
our ability to successfully identify, complete, and efficiently integrate acquisitions into our operations;
significant changes in, or new changes by, the independent system operators (“ISOs”) in the regions we operate;
competition; and
the “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022, and other public filings and press releases.

You should review the risk factors and other factors noted throughout this press release that could cause our actual results to differ materially from those contained in any forward-looking statement. All forward-looking statements speak only as of the date of this press release. Unless required by law, we disclaim any obligation to publicly update or revise these statements whether as a result of new information, future events or otherwise. It is not possible for us to predict all risks, nor can we assess the impact of all factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

Contact: Via Renewables, Inc.

Investors:

Stephen Rabalais, 832-200-3727

Media:

Kira Jordan, 832-255-7302

View source version on accesswire.com:

https://www.accesswire.com/826008/via-renewables-inc-announces-dividend-on-preferred-stock

Via Renewables, Inc. Enters into Agreement for all of its Class A Common Stock to be Acquired at $11.00 Per Share in Cash

Posted on January 2, 2024 by Travis Biedenbender

HOUSTON, TX / January 2, 2024 / Via Renewables, Inc. (“Via Renewables” or the “Company”) (NASDAQ: VIA; VIASP), an independent retail energy services company, announced today that it has signed a merger agreement (the “Agreement”) whereby all of Via Renewables’ Class A common stock, except for certain shares described below, will be acquired by Retailco, LLC, a Texas limited liability company (“Retailco”) for $11.00 per share. The cash consideration represents a 17.0% premium to the closing share price of Via Renewables’ Class A common stock on December 29, 2023, the last trading day prior to today’s announcement and execution of the Agreement. The cash consideration also represents a 19.7% premium to the 30 trading-day volume-weighted average price as of December 29, 2023, and a 36.5% premium to the 60 trading-day volume-weighted average price as of December 29, 2023.

Retailco is an entity owned by TxEx Energy Investments, LLC, which is wholly owned by William Keith Maxwell, III (“Maxwell”). Maxwell is Via Renewables’ current Chief Executive Officer and Chairman of the Board and directly and indirectly owns approximately 65.7% of Via Renewables’ common stock. The Agreement was negotiated and entered into following Via Renewables’ receipt of proposals from Maxwell in which he expressed an interest in acquiring all shares of Via Renewables’ Class A common stock that he did not currently hold.

The transaction will be effected by a merger of NuRetailco LLC, a Delaware limited liability company (“NuRetailco”) and wholly owned subsidiary of Retailco, with and into Via Renewables, with Via Renewables surviving. Under the terms of the Agreement, all of Via Renewables’ Class A common stock, except for shares of Class A common stock for which appraisal rights have been properly and validly exercised under Delaware law and certain additional shares, including those held by Via Renewables or any of its subsidiaries (or held in Via Renewables’ treasury); Retailco or NuRetailco or any of their respective subsidiaries; or Maxwell, and any person or entity controlled by him, will be converted into the right to receive the cash consideration. The Class A common stock, currently traded under the symbol VIA, will cease to trade on NASDAQ upon consummation of the transaction. Via Renewables expects that its Series A Preferred Stock, currently traded under the symbol VIASP, will continue to trade on NASDAQ following the transaction. Accordingly, Via Renewables will remain subject to the reporting requirements of the Securities Exchange Act of 1934.

The transaction was negotiated on behalf of Via Renewables by a Special Committee of its Board of Directors with the assistance of independent financial and legal advisors. The Special Committee is comprised of entirely disinterested and independent directors. Following the Special Committee’s unanimous recommendation in support of the merger, Via Renewables’ Board of Directors (other than Maxwell) approved the Agreement and recommended that the Via Renewables’ stockholders adopt and approve the Agreement and the merger.

The Agreement provides for a “go-shop” period of thirty days following execution of the Agreement during which the Special Committee will be permitted to initiate, solicit or knowingly encourage and facilitate discussion for any inquiry, offer or request that could reasonably be expected to lead to a competing transaction with a third party. Maxwell has not forfeited his right to participate in any subsequent meeting of the Via Renewables’ Board of Directors regarding a competing transaction or superior proposal. There can be no assurance that this “go-shop” process will result in a competing transaction or superior proposal.

The merger is subject to approval by a majority of holders of the issued and outstanding shares of Via Renewables’ Class A common stock and Class B common stock. In addition, the merger is subject to a non-waivable requirement of approval by the holders of at least a majority of the issued and outstanding Class A common stock and Class B common stock not owned by Maxwell and his affiliated entities or the directors, officers or their immediate family members. Maxwell and affiliated entities have entered into a support agreement to vote their shares in favor of the transaction and against any competing transaction.

The Agreement is not subject to a financing condition, but is subject to customary closing conditions. The transaction is expected to close in the second quarter of 2024.

Riley Securities, Inc. is serving as financial advisor to the Special Committee. Jones Walker LLP is serving as legal counsel to the Special Committee. Maxwell, Retailco and NuRetailco have been advised by their own financial advisors and legal counsel, Cokinos | Young.

About Via Renewables, Inc.

Via Renewables, Inc. is an independent retail energy services company founded in 1999 that provides residential and commercial customers across the United States with an alternative choice for their natural gas and electricity needs. Via Renewables, headquartered in Houston Texas, currently operated in 20 states and 103 utility territories under well-established and well-regarded brands, including Spark Energy, Major Energy, Provider Power, and Verde Energy. Via Renewables offers its customers a variety of product and service choices, including stable and predictable energy costs and green product alternatives.

Additional Information and Where to Find It

This communication may be deemed to be solicitation material in respect of the proposed transaction. The Company intends to file a proxy statement and other relevant materials with the SEC in connection with any such solicitation of proxies from Company stockholders. COMPANY STOCKHOLDERS ARE STRONGLY ENCOURAGED TO READ THE PROXY STATEMENT AND ANY OTHER RELEVANT MATERIALS IN THEIR ENTIRETY BEFORE MAKING A VOTING DECISION WHEN THEY BECOME AVAILABLE AS THEY WILL CONTAIN IMPORTANT INFORMATION.

Stockholders may obtain the proxy statement, any amendments or supplements to the proxy statement and other documents filed by the Company with the SEC for no charge at the SEC’s website at www.sec.gov. Copies will also be available at no charge at the Company’s website at http://www.viarenewables.com.

Participants in the Solicitation

The Company, its directors and certain of its executive officers may be deemed to be participants in the solicitation of proxies from the Company’s stockholders in connection with the proposed transaction. Information regarding the ownership of the Company’s Class A common stock by directors and executive officers is included in its SEC filings on Forms 3, 4, and 5, which can be found through the Company’s website (http://www.viarenewables.com), or through the SEC’s website at www.sec.gov. More detailed and updated information regarding the identity of potential participants, and their direct or indirect interests, by security holdings or otherwise, will be set forth in the proxy statement and other materials to be filed with the SEC in connection with the proposed transaction.

Cautionary Note Regarding Forward Looking Statements

This communication contains forward-looking statements that are subject to a number of risks and uncertainties, many of which are beyond the Company’s control. These forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), can be identified by the use of forward-looking terminology including “may,” “should,” “could,” “likely,” “will,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “plan,” “intend,” “project,” or other similar words. All statements, other than statements of historical fact, included in this communication related to the merger, including its timing and effects, conditions to closing and approval requirements, are forward looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove correct.

The forward-looking statements in this communication are subject to risks and uncertainties. Important factors that could cause actual results to materially differ from those projected in the forward-looking statements include, but are not limited to: the occurrence of any event, change or other circumstances that could give rise to the termination of the Agreement or change in vote recommendation; the inability to complete the proposed merger due to the failure to obtain stockholder approval for the proposed merger or the failure to satisfy other conditions to completion of the proposed merger; the failure of the proposed merger to close for any other reason; risks related to disruption of management’s attention from the Company’s ongoing business operations due to the transaction; the outcome of any legal proceedings, regulatory proceedings or enforcement matters that may be instituted against the Company and others relating to the Agreement or otherwise; the risk that the pendency of the proposed merger disrupts current plans and operations and the potential difficulties in employee retention as a result of the pendency of the proposed merger; the effect of the announcement of the proposed merger on the Company’s relationships with its contractual counterparties, operating results and business generally; and the amount of the costs, fees, expenses and charges related to the proposed merger.

Additional factors that may cause results to differ materially from those described in the forward-looking statements are set forth in the Company’s Annual Report on Form 10–K for the fiscal year ended December 31, 2022, under the heading “Item 1A. Risk Factors,” and in subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

You should review the risk factors and other factors noted throughout this communication that could cause the Company’s actual results to differ materially from those contained in any forward-looking statement. All forward-looking statements speak only as of the date of this communication. Unless required by law, the Company disclaims any obligation to publicly update or revise these statements whether as a result of new information, future events or otherwise. It is not possible for the Company to predict all risks, nor can it assess the impact of all factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

For further information, please contact:

Contact: Via Renewables, Inc.

Investors:

Stephen Rabalais, 832-200-3727

Media:

Kira Jordan, 832-255-7302

View source version on accesswire.com:

https://www.accesswire.com/viewarticle.aspx?id=821141&lang=en

Via Renewables, Inc. Reports Third Quarter 2023 Financial Results

Posted on November 1, 2023November 1, 2023 by Travis Biedenbender

HOUSTON, November 1, 2023 (ACCESSWIRE) — Via Renewables, Inc. (“Via Renewables” or the “Company”) (NASDAQ: VIA, VIASP), an independent retail energy services company, today reported financial results for the quarter ended September 30, 2023.

Key Highlights

Achieved $14.7 million in Net Income and $12.8 million in Adjusted EBITDA for the third quarter
Achieved $39.2 million in Gross Profit and $31.9 million in Retail Gross Margin for the third quarter
Total RCE count of 337,000 as of September 30, 2023
Total liquidity of $98.8 million as of September 30, 2023

“Via was able to navigate one of the hottest ERCOT summers on record due to our proven risk management policies and portfolio diversification. We’ve been able to stay financially flexible while paying down debt and boosting liquidity since last quarter. We added approximately 24,000 RCEs in the third quarter through our organic sales channels compared to 10,000 in the third quarter of 2022. Our average quarterly attrition is down to 3.1% compared to 4.0% for the same period last year,” said Keith Maxwell, Via Renewables’ President and Chief Executive Officer.

Summary Third Quarter 2023 Financial Results

Net Income for the quarter ended September 30, 2023, was $14.7 million compared to Net Loss of $(4.9) million for the quarter ended September 30, 2022. The increase, compared to the prior year, was largely the result of an increase in the mark-to-market on our hedges, partially offset by increases in income tax, G&A and interest expense.

For the quarter ended September 30, 2023, Via Renewables reported Adjusted EBITDA of $12.8 million compared to Adjusted EBITDA of $15.1 million for the quarter ended September 30, 2022. The decrease was driven by a decrease in our Retail Electricity Segment Gross Margin and an increase in G&A expense due to higher sales and marketing expenses and broker fees.

For the quarter ended September 30, 2023, Via Renewables reported Gross Profit of $39.2 million compared to Gross Profit of $16.6 million for the quarter ended September 30, 2022. The increase was largely due to an increase in the mark-to-market of our hedges.

For the quarter ended September 30, 2023, Via Renewables reported Retail Gross Margin of $31.9 million compared to Retail Gross Margin of $30.5 million for the quarter ended September 30, 2022. Higher volumes and unit margins resulted in an increase in our Natural Gas Segment Gross Margin. Lower volumes partially offset by higher unit margins resulted in a decrease in our Electric Retail Gross Margin.

($ in thousands)	September 30, 2023
Cash and cash equivalents	$ 45,137
Senior Credit Facility Availability ⁽¹⁾	28,706
Subordinated Debt Facility Availability ⁽²⁾	25,000
Total Liquidity	$ 98,843

(1) Reflects amount of Letters of Credit that could be issued based on existing covenants as of September 30, 2023.

(2) The availability of the Subordinated Facility is dependent on our Founder’s discretion.

Dividend

On October 18, 2023, we declared a dividend in the amount of $0.76459 per share for the Series A Preferred Stock for the third quarter of 2023. Dividends on Series A Preferred Stock will be paid on January 16, 2024 to holders of record on January 1, 2024.

On April 19, 2023, we announced that our Board of Directors had elected to temporarily suspend the quarterly cash dividend on the common stock. The Company previously elected to suspend its common stock dividend seeking to enhance its financial flexibility and improve its ability to manage market volatility while focusing on strengthening its balance sheet and investing in both organic and inorganic customer growth. Via Renewables will continue to closely monitor market conditions and the Board will thoughtfully evaluate the timing of for reinstatement of the Class A common stock dividend.

Business Outlook

Mr. Maxwell concluded, “Commodity prices have come down from this same time last year which allows us to be more competitive with our product offerings. Via will continue to strategically invest in customer growth through our organic and inorganic sales channels. The more diversity we can bring to our product offerings and customer base, the better we’ll be able to adapt to changing market dynamics and meet the preferences of a broader range of consumers.”

Conference Call and Webcast

Via will host a conference call to discuss Third Quarter 2023 results on Thursday, November 2, 2023, at 10:00 AM Central Time (11:00 AM Eastern).

A live webcast of the conference call can be accessed from the Events & Presentations page of the Via Renewables Investor Relations website at https://viarenewables.com/. An archived replay of the webcast will be available for twelve months following the live presentation.

About Via Renewables, Inc.

Via Renewables, Inc. is an independent retail energy services company founded in 1999 that provides residential and commercial customers in competitive markets across the United States with an alternative choice for natural gas and electricity. Headquartered in Houston, Texas, Via Renewables currently operates in 103 utility service territories across 20 states and the District of Columbia. Via Renewables offers its customers a variety of product and service choices, including stable and predictable energy costs and green product alternatives.

We use our website as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Investors should note that new materials, including press releases, updated investor presentations, and financial and other filings with the Securities and Exchange Commission are posted on the Via Renewables Investor Relations website at https://viarenewables.com/. Investors are urged to monitor our website regularly for information and updates about the Company.

Cautionary Note Regarding Forward Looking Statements

This earnings release contains forward-looking statements that are subject to a number of risks and uncertainties, many of which are beyond our control. These forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), can be identified by the use of forward-looking terminology including “may,” “should,” “could,” “likely,” “will,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “plan,” “intend,” “project,” or other similar words. All statements, other than statements of historical fact, included in this earnings release are forward-looking statements. The forward-looking statements include statements regarding the impacts of Winter Storm Uri, cash flow generation and liquidity, business strategy, prospects for growth and acquisitions, outcomes of legal proceedings, the timing, availability, ability to pay and implied amount of cash dividends and distributions on our Class A common stock and Series A Preferred Stock, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans, objectives, beliefs of management, availability and terms of capital, competition, government regulation and general economic conditions. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we cannot give any assurance that such expectations will prove correct.

The forward-looking statements in this earnings release are subject to risks and uncertainties. Important factors that could cause actual results to materially differ from those projected in the forward-looking statements include, but are not limited to:

our ability to remediate the material weakness in our internal control over financial reporting, the identification of any additional material weakness in the future or otherwise failing to maintain an effective system of internal controls;
the ultimate impact of the Winter Storm Uri, including future benefits or costs related to ERCOT market securitization efforts, and any corrective action by the State of Texas, ERCOT, the Railroad Commission of Texas, or the Public Utility Commission of Texas;
changes in commodity prices, the margins we achieve and interest rates;
the sufficiency of risk management and hedging policies and practices;
the impact of extreme and unpredictable weather conditions, including hurricanes, heat waves and other natural disasters;
federal, state and local regulations, including the industry’s ability to address or adapt to potentially restrictive new regulations that may be enacted by public utility commissions;
our ability to borrow funds and access credit markets;
restrictions and covenants in our debt agreements and collateral requirements;
credit risk with respect to suppliers and customers;
our ability to acquire customers and actual attrition rates;
changes in costs to acquire customers;
accuracy of billing systems;
our ability to successfully identify, complete, and efficiently integrate acquisitions into our operations;
significant changes in, or new changes by, the independent system operators (“ISOs”) in the regions we operate;
competition; and
the “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022, and other public filings and press releases.

You should review the risk factors and other factors noted throughout this earnings release that could cause our actual results to differ materially from those contained in any forward-looking statement. All forward-looking statements speak only as of the date of this earnings release. Unless required by law, we disclaim any obligation to publicly update or revise these statements whether as a result of new information, future events or otherwise. It is not possible for us to predict all risks, nor can we assess the impact of all factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

For further information, please contact:

Investor Relations:

Stephen Rabalais,

832-200-3727

Media Relations:

Kira Jordan,

832-255-7302

VIA RENEWABLES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

	Three Months Ended September 30,		Nine Months Ended September 30,
	2023	2022	2023	2022
Revenues:
Retail revenues	$ 109,753	$ 117,187	$ 337,499	$ 343,592
Net asset optimization (expense) revenue	(936)	1,672	(5,568)	(480)
Other revenue	1,422	—	1,559	—
Total Revenues	110,239	118,859	333,490	343,112
Operating Expenses:
Retail cost of revenues	71,050	102,212	234,417	232,621
General and administrative	17,135	16,302	51,073	44,820
Depreciation and amortization	1,816	3,270	7,146	13,390
Total Operating Expenses	90,001	121,784	292,636	290,831
Operating income (loss)	20,238	(2,925)	40,854	52,281
Other (expense) income:
Interest expense	(2,233)	(2,002)	(7,377)	(5,129)
Interest and other income	9	11	96	265
Total other expenses	(2,224)	(1,991)	(7,281)	(4,864)
Income (loss) before income tax expense	18,014	(4,916)	33,573	47,417
Income tax expense (benefit)	3,355	(48)	6,599	8,726
Net income (loss)	$ 14,659	$ (4,868)	$ 26,974	$ 38,691
Less: Net income (loss) attributable to non-controlling interests	7,140	(3,987)	11,661	21,981
Net income (loss) attributable to Via Renewables, Inc. stockholders	$ 7,519	$ (881)	$ 15,313	$ 16,710
Less: Dividend on Series A Preferred Stock	2,708	2,026	7,892	5,677
Net income (loss) attributable to stockholders of Class A common stock	$ 4,811	$ (2,907)	$ 7,421	$ 11,033

Net income (loss) attributable to Via Renewables, Inc. per share of Class A common stock
Basic	$ 1.49	$ (0.92)	$ 2.32	$ 3.50
Diluted	$ 1.47	$ (0.92)	$ 2.29	$ 3.48

Weighted average shares of Class A common stock outstanding
Basic	3,232	3,172	3,204	3,151
Diluted	7,232	3,172	7,204	3,173

Selected Balance Sheet Data
(in thousands)	September 30, 2023	December 31, 2022
Cash and cash equivalents	$ 45,137	$ 33,658
Working capital	89,395	86,759
Total assets	297,076	330,950
Total debt	105,000	120,000
Total liabilities	167,202	214,901
Total stockholders’ equity	48,894	42,570

Selected Cash Flow Data
	Nine Months Ended September 30,
(in thousands)	2023	2022
Cash flows provided by operating activities	$ 40,857	$ 21,211
Cash flows used in investing activities	(1,144)	(6,400)
Cash flows used in financing activities	(29,927)	(47,780)

Operating Segment Results
(in thousands, except volume and per unit operating data)	Three Months Ended September 30,		Nine Months Ended September 30,
	2023	2022	2023	2022

Retail Electricity Segment
Total Revenues	$ 97,855	$ 104,970	$ 255,447	$ 275,301
Retail Cost of Revenues	64,575	92,816	183,017	189,092
Less: Net gain (loss) on non-trading derivatives, net of cash settlements	7,289	(16,353)	2,976	14,240
Non-recurring event – Winter Storm Uri	—	—	—	9,565
Retail Gross Margin⁽¹⁾ — Electricity	$ 25,991	$ 28,507	$ 69,454	$ 62,404
Volumes — Electricity (MWhs)	627,851	694,035	1,541,182	1,982,684
Retail Gross Margin ⁽²⁾— Electricity per MWh	$ 41.40	$ 41.07	$ 45.07	$ 31.47

Retail Natural Gas Segment
Total Revenues	$ 11,898	$ 12,217	$ 82,052	$ 68,291
Retail Cost of Revenues	5,790	9,396	50,664	43,529
Less: Net gain (loss) on non-trading derivatives, net of cash settlements	948	872	(1,279)	4,263
Retail Gross Margin ⁽¹⁾— Gas	$ 5,160	$ 1,949	$ 32,667	$ 20,499
Volumes — Gas (MMBtus)	1,419,291	1,170,857	8,031,902	7,771,468
Retail Gross Margin ⁽²⁾— Gas per MMBtu	$ 3.64	$ 1.67	$ 4.07	$ 2.64

(1) Reflects the Retail Gross Margin attributable to our Retail Electricity Segment or Retail Natural Gas Segment, as applicable. Retail Gross Margin is a non-GAAP financial measure. See “Reconciliation of GAAP to Non-GAAP Measures” for a reconciliation of Retail Gross Margin to most directly comparable financial measures presented in accordance with GAAP.

(2) Reflects the Retail Gross Margin for the Retail Electricity Segment or Retail Natural Gas Segment, as applicable, divided by the total volumes in MWh or MMBtu, respectively.

Reconciliation of GAAP to Non-GAAP Measures

Adjusted EBITDA

We define “Adjusted EBITDA” as EBITDA less (i) customer acquisition costs incurred in the current period, plus or minus (ii) net (loss) gain on derivative instruments, and (iii) net current period cash settlements on derivative instruments, plus (iv) non-cash compensation expense, and (v) other non-cash and non-recurring operating items. EBITDA is defined as net income (loss) before the provision for income taxes, interest expense and depreciation and amortization. This conforms to the calculation of Adjusted EBITDA in our Senior Credit Facility.

We deduct all current period customer acquisition costs (representing spending for organic customer acquisitions) in the Adjusted EBITDA calculation because such costs reflect a cash outlay in the period in which they are incurred, even though we capitalize and amortize such costs over two years. We do not deduct the cost of customer acquisitions through acquisitions of businesses or portfolios of customers in calculating Adjusted EBITDA.

We adjust from time to time other non-cash or unusual and/or infrequent charges due to either their non-cash nature or their infrequency. We have historically included the financial impact of weather variability in the calculation of Adjusted EBITDA. We will continue this historical approach, but during the first quarter of 2021 we incurred a net pre-tax financial loss of $64.9 million due to Winter Storm Uri. This loss was incurred due to uncharacteristic extended sub-freezing temperatures across Texas combined with the impact of the pricing caps ordered by ERCOT. We believe this event is unusual, infrequent, and non-recurring in nature.

As our Senior Credit Facility is considered a material agreement and Adjusted EBITDA is a key component of our material covenants, we consider our covenant compliance to be material to the understanding of our financial condition and/or liquidity. Our lenders under our Senior Credit Facility allowed $60.0 million of the $64.9 million pre-tax storm loss incurred in the first quarter of 2021 to be added back as a non-recurring item in the calculation of Adjusted EBITDA for our Debt Covenant Calculations. We received a $0.4 million credit from ERCOT for Winter Storm related losses during the third quarter of 2021, resulting in a net pre-tax storm loss of $64.4 million for the year ended December 31, 2021. In June 2022, we received $9.6 million from ERCOT related to PURA Subchapter N Securitization financing. For consistent presentation of the financial impact of Winter Storm Uri, $5.2 million of the $9.6 million is reflected as non-recurring items reducing Adjusted EBITDA for the nine months ended September 30, 2022.

We believe that the presentation of Adjusted EBITDA provides information useful to investors in assessing our liquidity and financial condition and results of operations and that Adjusted EBITDA is also useful to investors as a financial indicator of our ability to incur and service debt, pay dividends, and fund capital expenditures. Adjusted EBITDA is a supplemental financial measure that management and external users of our consolidated financial statements, such as industry analysts, investors, commercial banks and rating agencies, use to assess the following:

our operating performance as compared to other publicly traded companies in the retail energy industry, without regard to financing methods, capital structure, historical cost basis and specific items not reflective of ongoing operations;
the ability of our assets to generate earnings sufficient to support our proposed cash dividends;
our ability to fund capital expenditures (including customer acquisition costs) and incur and service debt; and
our compliance with financial debt covenants in our Senior Credit Facility.

Retail Gross Margin

We define retail gross margin as gross profit less (i) net asset optimization revenues (expenses), (ii) net gains (losses) on non-trading derivative instruments, (iii) net current period cash settlements on non-trading derivative instruments and (iv) gains (losses) from non-recurring events (including non-recurring market volatility). Retail gross margin is included as a supplemental disclosure because it is a primary performance measure used by our management to determine the performance of our retail natural gas and electricity segments as a result of recurring operations. As an indicator of our retail energy business’s operating performance, retail gross margin should not be considered an alternative to, or more meaningful than, gross profit, its most directly comparable financial measure calculated and presented in accordance with GAAP.

We believe retail gross margin provides information useful to investors as an indicator of our retail energy business’s operating performance.

We have historically included the financial impact of weather variability in the calculation of Retail Gross Margin. We will continue this historical approach, but during the first quarter of 2021 we added back the $64.9 million net financial loss incurred related to Winter Storm Uri, as described above, in the calculation of Retail Gross Margin because the extremity of the Texas storm combined with the impact of unprecedented pricing mechanisms ordered by ERCOT is considered unusual, infrequent, and non-recurring in nature. In June 2022, we received $9.6 million from ERCOT related to PURA Subchapter N Securitization financing. The $9.6 million is reflected as a non-recurring item reducing Retail Gross Margin for the nine months ended September 30, 2022 for consistent presentation of the financial impacts of Winter Storm Uri.

Our non-GAAP financial measures of Adjusted EBITDA and Retail Gross Margin should not be considered as alternatives to net income (loss), net cash provided by (used in) operating activities, or gross profit. Adjusted EBITDA and Retail Gross Margin are not presentations made in accordance with GAAP and have limitations as analytical tools. You should not consider Adjusted EBITDA or Retail Gross Margin in isolation or as a substitute for analysis of our results as reported under GAAP. Because Adjusted EBITDA and Retail Gross Margin exclude some, but not all, items that affect net income (loss), net cash provided by (used in) operating activities, and gross profit, and are defined differently by different companies in our industry, our definition of Adjusted EBITDA and Retail Gross Margin may not be comparable to similarly titled measures of other companies.

Management compensates for the limitations of Adjusted EBITDA and Retail Gross Margin as analytical tools by reviewing the comparable GAAP measures, understanding the differences between the measures and incorporating these data points into management’s decision-making process.

The following tables present a reconciliation of Adjusted EBITDA to net income and net cash provided operating activities for each of the periods indicated.

Reconciliation of Adjusted EBITDA to net income (loss):
	Three Months Ended September 30,		Nine Months Ended September 30,
(in thousands)	2023	2022	2023	2022
Net income (loss)	$ 14,659	$ (4,868)	$ 26,974	$ 38,691
Depreciation and amortization	1,816	3,270	7,146	13,390
Interest expense	2,233	2,002	7,377	5,129
Income tax expense (benefit)	3,355	(48)	6,599	8,726
EBITDA	22,063	356	48,096	65,936
Less:
Net, (loss) gain on derivative instruments	(6,991)	(1,645)	(50,428)	55,815
Net cash settlements on derivative instruments	15,100	(14,078)	51,767	(35,922)
Customer acquisition costs	1,698	1,684	4,961	4,274
Plus:
Non-cash compensation expense	500	668	1,784	2,590
Non-recurring event – Winter Storm Uri	—	—	—	(5,162)
Adjusted EBITDA	$ 12,756	$ 15,063	$ 43,580	$ 39,197

Reconciliation of Adjusted EBITDA to net cash provided by operating activities:
	Three Months Ended September 30,		Nine Months Ended September 30,
(in thousands)	2023	2022	2023	2022
Net cash provided by operating activities	$ 6,161	$ 8,267	$ 40,857	$ 21,211
Amortization of deferred financing costs	(206)	(206)	(619)	(919)
Bad debt expense	(829)	(1,062)	(2,717)	(2,895)
Interest expense	2,233	2,002	7,377	5,129
Income tax expense (benefit)	3,355	(48)	6,599	8,726
Non-recurring event – Winter Storm Uri	—	—	—	(5,162)
Changes in operating working capital
Accounts receivable, prepaids, current assets	6,609	2,144	(31,254)	(7,229)
Inventory	1,104	2,883	(1,378)	3,292
Accounts payable and accrued liabilities	(3,432)	508	28,801	21,306
Other	(2,239)	575	(4,086)	(4,262)
Adjusted EBITDA	$ 12,756	$ 15,063	$ 43,580	$ 39,197
Cash Flow Data:
Net cash provided by operating activities	$ 6,161	$ 8,267	$ 40,857	$ 21,211
Net cash used in investing activities	$ (369)	$ (1,240)	$ (1,144)	$ (6,400)
Net cash used in financing activities	$ (7,714)	$ (10,199)	$ (29,927)	$ (47,780)

The following table presents a reconciliation of Retail Gross Margin to Gross Profit for each of the periods indicated.

Reconciliation of Retail Gross Margin to Gross Profit
	Three Months Ended September 30,		Nine Months Ended September 30,
(in thousands)	2023	2022	2023	2022
Total Revenue	$ 110,239	$ 118,859	$ 333,490	$ 343,112
Less:
Retail cost of revenues	71,050	102,212	234,417	232,621
Gross Profit	39,189	16,647	99,073	110,491
Less:
Net asset optimization (expense) revenue	(936)	1,672	(5,568)	(480)
(Loss) gain on non-trading derivative instruments	(6,193)	(1,413)	(49,002)	54,570
Cash settlements on non-trading derivative instruments	14,430	(14,068)	50,699	(36,067)
Non-recurring event – Winter Storm Uri	—	—	—	9,565
Retail Gross Margin	$ 31,888	$ 30,456	$ 102,944	$ 82,903
Retail Gross Margin – Retail Electricity Segment ⁽¹⁾	$ 25,991	$ 28,507	$ 69,454	$ 62,404
Retail Gross Margin – Retail Natural Gas Segment	$ 5,160	$ 1,949	$ 32,667	$ 20,499
Retail Gross Margin – Other	$ 737	$ —	$ 823	$ —

(1) Retail Gross Margin for the nine months ended September 30, 2022 includes a deduction of $9.6 million related to proceeds received under an ERCOT (Winter Storm Uri) securitization mechanism in June 2022. See further discussion above.

View source version on accesswire.com:

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Via Renewables, Inc. to Present Third Quarter 2023 Financial Results on Thursday, November 2, 2023

Posted on October 23, 2023 by Travis Biedenbender

HOUSTON, TX / ACCESSWIRE / October 23, 2023 / Via Renewables, Inc. (“Via Renewables” or the “Company”) (NASDAQ: VIA), an independent retail energy services company, announced today that it plans to present its third quarter 2023 financial results in a conference call and webcast on Thursday, November 2, 2023 at 10:00 AM Central (11:00 AM Eastern).

A live webcast of the conference call can be accessed from the Events & Presentations page of the Via Renewables Investor Relations website at ViaRenewables.com. An archived replay of the webcast will be available for twelve months following the live presentation.

About Via Renewables, Inc.

Via Renewables, Inc. is an independent retail energy services company founded in 1999 that provides residential and commercial customers in competitive markets across the United States with an alternative choice for their natural gas and electricity under our well-established and well-regarded brands, including Spark Energy, Major Energy, Provider Power, and Verde Energy. Headquartered in Houston, Texas, Via Renewables currently operates in 20 states and serves 103 utility territories. Via Renewables offers its customers a variety of product and service choices, including stable and predictable energy costs and green product alternatives.

Contact: Via Renewables, Inc.

Investors:

Stephen Rabalais, 832-200-3727

Media:

Kira Jordan, 832-255-7302

View source version on accesswire.com:

https://www.accesswire.com/795683/via-renewables-inc-to-present-third-quarter-2023-financial-results-on-thursday-november-2-2023

Via Renewables, Inc. Announces Dividend on Preferred Stock

Posted on October 18, 2023October 18, 2023 by Travis Biedenbender

HOUSTON, October 18, 2023 (ACCESSWIRE) – Via Renewables, Inc. (“Via Renewables” or the “Company”) (NASDAQ: VIA; VIASP), an independent retail energy services company, announced today that, in accordance with the terms of the 8.75% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock (“Series A Preferred Stock”) of the Company, the Board of Directors has declared a quarterly cash dividend in the amount of $0.76459 per share on the Series A Preferred Stock. The dividend will be paid on January 16, 2024 to holders of record of Via Renewables’ Series A Preferred Stock on January 1, 2024. The floating rate period for the Series A Preferred Stock began on April 15, 2022.

The Board will continue to re-evaluate the payment of the quarterly common stock dividend as market conditions evolve. The Company previously elected to suspend its common stock dividend seeking to enhance its financial flexibility and improve its ability to manage market volatility while focusing on strengthening its balance sheet and investing in both organic and inorganic customer growth.

About Via Renewables, Inc.

Via Renewables, Inc. is an independent retail energy services company founded in 1999 that provides residential and commercial customers in competitive markets across the United States with an alternative choice for their natural gas and electricity under our well-established and well-regarded brands, including Spark Energy, Major Energy, Provider Power, and Verde Energy. Headquartered in Houston, Texas, Via Renewables currently operates in 20 states and serves 103 utility territories. Via Renewables offers its customers a variety of product and service choices, including stable and predictable energy costs and green product alternatives.

Cautionary Note Regarding Forward Looking Statements

our ability to remediate the material weakness in our internal control over financial reporting, the identification of any additional material weakness in the future or otherwise failing to maintain an effective system of internal controls;
the ultimate impact of Winter Storm Uri, including future benefits or costs related to ERCOT market securitization efforts, and any corrective action by the State of Texas, ERCOT, the Railroad Commission of Texas, or the Public Utility Commission of Texas;
changes in commodity prices, the margins we achieve, and interest rates;
the sufficiency of risk management and hedging policies and practices;
the impact of extreme and unpredictable weather conditions, including hurricanes, heat waves, and other natural disasters;
federal, state and local regulations, including the industry’s ability to address or adapt to potentially restrictive new regulations that may be enacted by public utility commissions;
our ability to borrow funds and access credit markets;
restrictions and covenants in our debt agreements and collateral requirements;
credit risk with respect to suppliers and customers;
our ability to acquire customers and actual attrition rates;
changes in costs to acquire customers;
accuracy of billing systems;
our ability to successfully identify, complete, and efficiently integrate acquisitions into our operations;
significant changes in, or new changes by, the independent system operators (“ISOs”) in the regions we operate;
competition; and
the “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022, and other public filings and press releases.

Contact: Via Renewables, Inc.

Investors:

Stephen Rabalais, 832-200-3727

Media:

Kira Jordan, 832-255-7302

View source version on accesswire.com:

https://www.accesswire.com/794290/via-renewables-inc-announces-dividend-on-preferred-stock

Via Renewables, Inc. Reports Second Quarter 2023 Financial Results

Posted on August 2, 2023August 4, 2023 by Travis Biedenbender

HOUSTON, August 2, 2023 (ACCESSWIRE) — Via Renewables, Inc. (“Via Renewables” or the “Company”) (NASDAQ: VIA, VIASP), an independent retail energy services company, today reported financial results for the quarter ended June 30, 2023.

Key Highlights

Reported $19.1 million in Net Income and $12.0 million in Adjusted EBITDA for the second quarter
Achieved $45.5 million in Gross Profit and $30.7 million in Retail Gross Margin for the second quarter
Total RCE count of 346,000 as of June 30, 2023, up from 339,000 as of March 31, 2023
Total liquidity of $86.3 million as of June 30, 2023

“We are proud to announce another strong quarter marked by organic growth in our customer book and continued financial discipline. Our proactive efforts in expanding our customer base allowed us to increase our RCEs for the second consecutive quarter ” said Keith Maxwell, Via Renewables’ President and Chief Executive Officer.

Summary Second Quarter 2023 Financial Results

Net Income for the quarter ended June 30, 2023, was $19.1 million compared to Net Income of $12.5 million for the quarter ended June 30, 2022. The increase, compared to the prior year, was largely the result of an increase in the mark-to-market on our hedges, partially offset by an increase in G&A expense and income tax expense.

For the quarter ended June 30, 2023, Via Renewables reported Adjusted EBITDA of $12.0 million compared to Adjusted EBITDA of $13.3 million for the quarter ended June 30, 2022. The decrease was driven by a $4.4 million one time add back related to Winter Storm Uri in the second quarter of 2022 coupled with a $4.1 million increase in G&A expense, excluding non-cash compensation expense. This was largely offset by a $7.0 million increase in Retail Gross Margin.

For the quarter ended June 30, 2023, Via Renewables reported Gross Profit of $45.5 million compared to Gross Profit of $35.4 million for the quarter ended June 30, 2022. The increase, compared to the prior year, was predominately the result of an increase in the mark-to-market on our hedges and an increase in Retail Gross Margin for our retail electricity segment. The increase was partially offset by the $9.6 million add back to Retail Gross Margin related to Winter Storm Uri in the second quarter of 2022.

For the quarter ended June 30, 2023, Via Renewables reported Retail Gross Margin of $30.7 million compared to Retail Gross Margin of $23.7 million for the quarter ended June 30, 2022. The $7.0 million increase in Retail Gross Margin was mainly due to higher unit margins for both retail electricity and natural gas coupled with higher natural gas volumes. This was partially offset by decreased retail electricity volumes.

($ in thousands)	June 30, 2023
Cash and cash equivalents	$ 47,059
Senior Credit Facility Availability ⁽¹⁾	19,272
Subordinated Debt Facility Availability ⁽²⁾	20,000
Total Liquidity	$ 86,331

(1) Reflects amount of Letters of Credit that could be issued based on existing covenants as of June 30, 2023.

(2) The availability of the Subordinated Facility is dependent on our Founder’s discretion.

Dividend

On July 19, 2023, we declared a dividend in the amount of $0.75922 per share for the Series A Preferred Stock, which will be paid on October 16, 2023 to holders of record on October 1, 2023. The Company previously elected to suspend its common stock dividend seeking to enhance its financial flexibility and improve its ability to manage market volatility while focusing on strengthening its balance sheet and investing in both organic and inorganic customer growth. Via Renewables will continue to closely monitor market conditions and the Board will thoughtfully evaluate the timing of for reinstatement of the Class A common stock dividend.

Business Outlook

Mr. Maxwell concluded, “We’re strengthening our balance sheet which gives us additional financial flexibility as we navigate the ERCOT summer months. We’ve been able to lower our total debt and increase our liquidity over the three months ending June 30, 2023. Our objective is to build on this favorable momentum throughout the remainder of the year to ensure long term sustainable growth for our shareholders.”

Conference Call and Webcast

Via will host a conference call to discuss Second Quarter 2023 results on Thursday, August 3, 2023, at 10:00 AM Central Time (11:00 AM Eastern).

A live webcast of the conference call can be accessed from the Events page of the Via Renewables Investor Relations website at https://viarenewables.com/. An archived replay of the webcast will be available for twelve months following the live presentation.

About Via Renewables, Inc.

Via Renewables, Inc. is an independent retail energy services company founded in 1999 that provides residential and commercial customers in competitive markets across the United States with an alternative choice for natural gas and electricity. Headquartered in Houston, Texas, Via Renewables currently operates in 103 utility service territories across 20 states and the District of Columbia. Via Renewables offers its customers a variety of product and service choices, including stable and predictable energy costs and green product alternatives.

We use our website as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Investors should note that new materials, including press releases, updated investor presentations, and financial and other filings with the Securities and Exchange Commission are posted on the Via Renewables Investor Relations website at https://viarenewables.com/. Investors are urged to monitor our website regularly for information and updates about the Company.

Cautionary Note Regarding Forward Looking Statements

our ability to remediate the material weakness in our internal control over financial reporting, the identification of any additional material weakness in the future or otherwise failing to maintain an effective system of internal controls;
the ultimate impact of Winter Storm Uri, including future benefits or costs related to ERCOT market securitization efforts, and any corrective action by the State of Texas, ERCOT, the Railroad Commission of Texas, or the Public Utility Commission of Texas;
changes in commodity prices, the margins we achieve and interest rates;
the sufficiency of risk management and hedging policies and practices;
the impact of extreme and unpredictable weather conditions, including hurricanes, heat waves and other natural disasters;
federal, state and local regulations, including the industry’s ability to address or adapt to potentially restrictive new regulations that may be enacted by public utility commissions;
our ability to borrow funds and access credit markets;
restrictions and covenants in our debt agreements and collateral requirements;
credit risk with respect to suppliers and customers;
our ability to acquire customers and actual attrition rates;
changes in costs to acquire customers;
accuracy of billing systems;
our ability to successfully identify, complete, and efficiently integrate acquisitions into our operations;
significant changes in, or new changes by, the independent system operators (“ISOs”) in the regions we operate;
competition; and
the “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022, and other public filings and press releases.

For further information, please contact:

Investor Relations:

Stephen Rabalais,

832-200-3727

Media Relations:

Kira Jordan,

832-255-7302

VIA RENEWABLES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
Revenues:
Retail revenues	$ 92,621	$ 98,347	$ 227,746	$ 226,405
Net asset optimization expense	(1,359)	(1,248)	(4,632)	(2,152)
Other revenue	137	—	137	—
Total Revenues	91,399	97,099	223,251	224,253
Operating Expenses:
Retail cost of revenues	45,926	61,702	163,367	130,409
General and administrative	16,713	13,583	33,938	28,518
Depreciation and amortization	1,994	4,936	5,330	10,120
Total Operating Expenses	64,633	80,221	202,635	169,047
Operating income	26,766	16,878	20,616	55,206
Other (expense) income:
Interest expense	(2,447)	(1,820)	(5,144)	(3,127)
Interest and other income	7	206	87	255
Total other expenses	(2,440)	(1,614)	(5,057)	(2,872)
Income before income tax expense	24,326	15,264	15,559	52,334
Income tax expense	5,240	2,730	3,244	8,774
Net income	$ 19,086	$ 12,534	$ 12,315	$ 43,560
Less: Net income attributable to non-controlling interests	11,105	7,916	4,521	25,968
Net income attributable to Via Renewables, Inc. stockholders	$ 7,981	$ 4,618	$ 7,794	$ 17,592
Less: Dividend on Series A Preferred Stock	2,640	1,700	5,184	3,651
Net income attributable to stockholders of Class A common stock	$ 5,341	$ 2,918	$ 2,610	$ 13,941

Net income attributable to Via Renewables, Inc. per share of Class A common stock
Basic	$ 1.67	$ 0.93	$ 0.82	$ 4.44
Diluted	$ 1.67	$ 0.92	$ 0.82	$ 4.41

Weighted average shares of Class A common stock outstanding
Basic	3,205	3,149	3,189	3,140
Diluted	3,205	3,155	3,189	3,158

Selected Balance Sheet Data
(in thousands)	June 30, 2023	December 31, 2022
Cash and cash equivalents	$ 47,059	$ 33,658
Working capital	80,409	86,759
Total assets	294,783	330,950
Total debt	110,000	120,000
Total liabilities	177,339	214,901
Total stockholders’ equity	43,412	42,570

Selected Cash Flow Data
	Six Months Ended June 30,
(in thousands)	2023	2022
Cash flows provided by operating activities	$ 34,696	$ 12,944
Cash flows used in investing activities	(775)	(5,160)
Cash flows used in financing activities	(22,213)	(37,581)

Operating Segment Results
(in thousands, except volume and per unit operating data)	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022

Retail Electricity Segment
Total Revenues	$ 74,765	$ 82,290	$ 157,592	$ 170,331
Retail Cost of Revenues	37,612	50,116	118,442	96,276
Less: Net gain (loss) on non-trading derivatives, net of cash settlements	14,159	5,898	(4,313)	30,593
Non-recurring event – Winter Storm Uri	—	9,565	—	9,565
Retail Gross Margin⁽¹⁾ — Electricity	$ 22,994	$ 16,711	$ 43,463	$ 33,897
Volumes — Electricity (MWhs)	457,054	603,497	913,331	1,288,649
Retail Gross Margin ⁽²⁾— Electricity per MWh	$ 50.31	$ 27.69	$ 47.59	$ 26.30

Retail Natural Gas Segment
Total Revenues	$ 17,856	$ 16,057	$ 70,154	$ 56,074
Retail Cost of Revenues	8,263	11,586	44,874	34,133
Less: Net gain (loss) on non-trading derivatives, net of cash settlements	1,947	(2,510)	(2,227)	3,391
Retail Gross Margin ⁽¹⁾— Gas	$ 7,646	$ 6,981	$ 27,507	$ 18,550
Volumes — Gas (MMBtus)	2,064,785	1,943,494	6,612,611	6,600,612
Retail Gross Margin ⁽²⁾— Gas per MMBtu	$ 3.70	$ 3.59	$ 4.16	$ 2.81

(2) Reflects the Retail Gross Margin for the Retail Electricity Segment or Retail Natural Gas Segment, as applicable, divided by the total volumes in MWh or MMBtu, respectively.

Reconciliation of GAAP to Non-GAAP Measures

Adjusted EBITDA

our operating performance as compared to other publicly traded companies in the retail energy industry, without regard to financing methods, capital structure, historical cost basis and specific items not reflective of ongoing operations;
the ability of our assets to generate earnings sufficient to support our proposed cash dividends;
our ability to fund capital expenditures (including customer acquisition costs) and incur and service debt; and
our compliance with financial debt covenants in our Senior Credit Facility.

Retail Gross Margin

We believe retail gross margin provides information useful to investors as an indicator of our retail energy business’s operating performance.

We have historically included the financial impact of weather variability in the calculation of Retail Gross Margin. We will continue this historical approach, but during the first quarter of 2021 we added back the $64.9 million net financial loss incurred related to Winter Storm Uri, as described above, in the calculation of Retail Gross Margin because the extremity of the Texas storm combined with the impact of unprecedented pricing mechanisms ordered by ERCOT is considered unusual, infrequent, and non-recurring in nature. In June 2022, we received $9.6 million from ERCOT related to PURA Subchapter N Securitization financing. The $9.6 million is reflected as a non-recurring item reducing Retail Gross Margin for the three and six months ended June 30, 2022 for consistent presentation of the financial impacts of Winter Storm Uri.

The following tables present a reconciliation of Adjusted EBITDA to net income and net cash provided operating activities for each of the periods indicated.

Reconciliation of Adjusted EBITDA to net income:
	Three Months Ended June 30,		Six Months Ended June 30,
(in thousands)	2023	2022	2023	2022
Net income	$ 19,086	$ 12,534	$ 12,315	$ 43,560
Depreciation and amortization	1,994	4,936	5,330	10,120
Interest expense	2,447	1,820	5,144	3,127
Income tax expense	5,240	2,730	3,244	8,774
EBITDA	28,767	22,020	26,033	65,581
Less:
Net, (loss) gain on derivative instruments	(667)	12,397	(43,437)	57,460
Net cash settlements on derivative instruments	16,530	(8,708)	36,667	(21,844)
Customer acquisition costs	1,490	1,394	3,263	2,590
Plus:
Non-cash compensation expense	599	1,571	1,284	1,922
Non-recurring event – Winter Storm Uri	—	(5,162)	—	(5,162)
Adjusted EBITDA	$ 12,013	$ 13,346	$ 30,824	$ 24,135

Reconciliation of Adjusted EBITDA to net cash provided by operating activities:
	Three Months Ended June 30,		Six Months Ended June 30,
(in thousands)	2023	2022	2023	2022
Net cash provided by operating activities	$ 21,636	$ 8,361	$ 34,696	$ 12,944
Amortization of deferred financing costs	(207)	(468)	(413)	(713)
Bad debt expense	(933)	(809)	(1,888)	(1,833)
Interest expense	2,447	1,820	5,144	3,127
Income tax expense	5,240	2,730	3,244	8,774
Non-recurring event – Winter Storm Uri	—	(5,162)	—	(5,162)
Changes in operating working capital
Accounts receivable, prepaids, current assets	(23,788)	(9,928)	(37,863)	(9,373)
Inventory	1,367	2,283	(2,482)	409
Accounts payable and accrued liabilities	10,646	15,221	32,233	20,798
Other	(4,395)	(702)	(1,847)	(4,836)
Adjusted EBITDA	$ 12,013	$ 13,346	$ 30,824	$ 24,135
Cash Flow Data:
Net cash provided by operating activities	$ 21,636	$ 8,361	$ 34,696	$ 12,944
Net cash used in investing activities	$ (401)	$ (1,562)	$ (775)	$ (5,160)
Net cash used in financing activities	$ (19,338)	$ (15,056)	$ (22,213)	$ (37,581)

The following table presents a reconciliation of Retail Gross Margin to Gross Profit for each of the periods indicated.

Reconciliation of Retail Gross Margin to Gross Profit
	Three Months Ended June 30,		Six Months Ended June 30,
(in thousands)	2023	2022	2023	2022
Total Revenue	$ 91,399	$ 97,099	$ 223,251	$ 224,253
Less:
Retail cost of revenues	45,926	61,702	163,367	130,409
Gross Profit	45,473	35,397	59,884	93,844
Less:
Net asset optimization expense	(1,359)	(1,248)	(4,632)	(2,152)
(Loss) gain on non-trading derivative instruments	(40)	12,067	(42,809)	55,983
Cash settlements on non-trading derivative instruments	16,146	(8,679)	36,269	(21,999)
Non-recurring event – Winter Storm Uri	—	9,565	—	9,565
Retail Gross Margin	$ 30,726	$ 23,692	$ 71,056	$ 52,447
Retail Gross Margin – Retail Electricity Segment ⁽¹⁾	$ 22,994	$ 16,711	$ 43,463	$ 33,897
Retail Gross Margin – Retail Natural Gas Segment	$ 7,646	$ 6,981	$ 27,507	$ 18,550
Retail Gross Margin – Other	$ 86	$ —	$ 86	$ —

(1) Retail Gross Margin for the three and six months ended June 30, 2022 includes a deduction of $9.6 million related to proceeds received under an ERCOT (Winter Storm Uri) securitization mechanism in June 2022. See further discussion above.

Via Renewables, Inc. to Present Second Quarter 2023 Financial Results on Thursday, August 3, 2023

Posted on July 28, 2023October 19, 2023 by Travis Biedenbender

HOUSTON, TX / ACCESSWIRE / July 28, 2023 / Via Renewables, Inc. (“Via Renewables” or the “Company”) (NASDAQ: VIA), an independent retail energy services company, announced today that it plans to present its second quarter 2023 financial results in a conference call and webcast on Thursday, August 3, 2023 at 10:00 AM Central (11:00 AM Eastern).

About Via Renewables, Inc.

Via Renewables, Inc. is an independent retail energy services company founded in 1999 that provides residential and commercial customers in competitive markets across the United States with an alternative choice for their natural gas and electricity under our well-established and well-regarded brands, including Spark Energy, Major Energy, Provider Power, and Verde Energy. Headquartered in Houston, Texas, Via Renewables currently operates in 20 states and serves 103 utility territories. Via Renewables offers its customers a variety of product and service choices, including stable and predictable energy costs and green product alternatives.

Contact: Via Renewables, Inc.

Investors:

Stephen Rabalais, 832-200-3727

Media:

Kira Jordan, 832-255-7302

View source version on accesswire.com:

https://www.accesswire.com/770960/Via-Renewables-Inc-to-Present-Second-Quarter-2023-Financial-Results-on-Thursday-August-3-2023

Via Renewables, Inc. Announces Dividend on Preferred Stock

Posted on July 19, 2023 by Travis Biedenbender

HOUSTON, July 19, 2023 (ACCESSWIRE) – Via Renewables, Inc. (“Via Renewables” or the “Company”) (NASDAQ: VIA; VIASP), an independent retail energy services company, announced today that, in accordance with the terms of the 8.75% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock (“Series A Preferred Stock”) of the Company, the Board of Directors has declared a quarterly cash dividend in the amount of $0.75922 per share on the Series A Preferred Stock. The dividend will be paid on October 16, 2023 to holders of record of Via Renewables’ Series A Preferred Stock on October 1, 2023. The floating rate period for the Series A Preferred Stock began on April 15, 2022.

In accordance with the Adjustable Interest Rate (LIBOR) Act (the “LIBOR Act”) and the final regulations promulgated pursuant thereto by the Board of Governors of the Federal Reserve System (“Board”), the LIBOR Act specifies that the replacement benchmark rate on the Series A Preferred Stock following Three-Month LIBOR’s end of publication on June 30,2023 is Three-Month CME Term SOFR, as administered by CME Group Benchmark Administration, Ltd. (or any successor administrator), plus a tenor spread adjustment of 0.26161%.

About Via Renewables, Inc.

Via Renewables, Inc. is an independent retail energy services company founded in 1999 that provides residential and commercial customers in competitive markets across the United States with an alternative choice for their natural gas and electricity under our well-established and well-regarded brands, including Spark Energy, Major Energy, Provider Power, and Verde Energy. Headquartered in Houston, Texas, Via Renewables currently operates in 20 states and serves 103 utility territories. Via Renewables offers its customers a variety of product and service choices, including stable and predictable energy costs and green product alternatives.

Cautionary Note Regarding Forward Looking Statements

This press release contains forward-looking statements that are subject to a number of risks and uncertainties, many of which are beyond our control. These forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) can be identified by the use of forward-looking terminology including “may,” “should,” “could,” “likely,” “will,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “plan,” “intend,” “project,” or other similar words. All statements, other than statements of historical fact included in this press release are forward-looking statements. The forward-looking statements include statements regarding the timing, availability, ability to pay and implied amount of cash dividends and distributions on our Class A common stock and Series A Preferred Stock, the impacts of the 2021 severe weather event, cash flow generation and liquidity, business strategy, prospects for growth and acquisitions, outcomes of legal proceedings, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans, objectives, beliefs of management, availability of and terms of capital, competition, government regulation and general economic conditions. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we cannot give any assurance that such expectations will prove correct.

our ability to remediate the material weakness in our internal control over financial reporting, the identification of additional material weaknesses in the future or otherwise failing to maintain an effective system of internal controls;
the ultimate impact of the 2021 severe weather event, including future benefits or costs related to ERCOT market Securitization efforts, and any corrective action by the State of Texas, ERCOT, the Railroad Commission of Texas, or the Public Utility Commission of Texas;
changes in commodity prices, the margins we achieve, and interest rates;
the sufficiency of risk management and hedging policies and practices;
the impact of extreme and unpredictable weather conditions, including hurricanes, heat waves, and other natural disasters;
federal, state and local regulations, including the industry’s ability to address or adapt to potentially restrictive new regulations that may be enacted by public utility commissions;
our ability to borrow funds and access credit markets;
restrictions and covenants in our debt agreements and collateral requirements;
credit risk with respect to suppliers and customers;
our ability to acquire customers and actual attrition rates;
changes in costs to acquire customers;
accuracy of billing systems;
our ability to successfully identify, complete, and efficiently integrate acquisitions into our operations;
significant changes in, or new changes by, the independent system operators (“ISOs”) in the regions we operate;
competition; and
the “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022, and other public filings and press releases.

Contact: Via Renewables, Inc.

Investors:

Stephen Rabalais, 832-200-3727

Media:

Kira Jordan, 832-255-7302

View source version on accesswire.com:

https://www.accesswire.com/769245/Via-Renewables-Inc-Announces-Dividend-on-Preferred-Stock

Via Renewables, Inc. Names Stephen Kennedy to Board of Directors

Posted on June 12, 2023 by Travis Biedenbender

HOUSTON, June 12, 2023 (ACCESSWIRE) – Via Renewables, Inc. (“Via Renewables” or the “Company”) (NASDAQ: VIA), an independent retail energy services company, announced today that Stephen (Steve) Kennedy has been appointed to the Company’s Board of Directors, effective June 7, 2023, as an independent director. He will serve as a Class II director and will join the Audit Committee, the Compensation Committee, and the Nominating and Corporate Governance Committee. Additionally, the Company announced the departure of Nick Evans from its Board of Directors, effective June 9, 2023.

“We are thrilled to have Steve join our Board and look forward to his valued input. Steve brings decades of energy and energy banking experience to the Board. He has a background in increasing profits, reducing costs, and delivering top-quality service to clients. We believe his experience will complement our business very well,” said Keith Maxwell, Via’s CEO and Chairman of the Board. “We would also like to express our sincere gratitude to Nick Evans for his dedicated service and significant contributions to Via. His expertise and wisdom have been invaluable in shaping our company’s growth and success.”

“I’m excited to join Via’s Board of Directors. I believe my professional skills and history align well with the knowledge and fiduciary responsibilities required to be an effective Board member of Via,” said Mr. Kennedy. “I believe my leadership and collaboration skills will support the organization’s continued innovation and success.”

About Steve Kennedy:

Steve Kennedy began his role as Founder & Senior Advisor – Energy Group for Amegy Bank in 2022, where he is currently employed. Prior to that, he was EVP & Head of Energy Banking at Amegy for 25 years. Before his time with Amegy, he held a position as VP of Energy Banking at Wells Fargo. Prior to joining Wells Fargo, Mr. Kennedy held a position of AVP of Energy Banking at Bank One. He holds an M.B.A. with a concentration in Finance from Baylor University and received his Bachelor of Science degree in Petroleum Engineering from Texas A&M University. He has authored several articles on energy matters, including one regarding energy derivatives published in the October 2005 edition of the “Oil & Gas Financial Journal. He also served as the President of the Petroleum Club of Houston from 2022 to 2023 and is a founding board member of the Houston Energy Forum.

About Via Renewables, Inc.

Via Renewables, Inc. is an independent retail energy services company founded in 1999 that provides residential and commercial customers in competitive markets across the United States with an alternative choice for their natural gas and electricity under our well-established and well-regarded brands, including Spark Energy, Major Energy, Provider Power, and Verde Energy. Headquartered in Houston, Texas, Via Renewables currently operates in 20 states and serves 103 utility territories. Via Renewables offers its customers a variety of product and service choices, including stable and predictable energy costs and green product alternatives.

Contact: Via Renewables, Inc.

Investors:

Stephen Rabalais, 832-200-3727

Media:

Kira Jordan, 832-255-7302

View source version on accesswire.com:

https://www.accesswire.com/760365/Via-Renewables-Inc-Names-Stephen-Kennedy-to-Board-of-Directors

Via Renewables, Inc. Reports First Quarter 2023 Financial Results

Posted on May 3, 2023 by Travis Biedenbender

HOUSTON, May 3, 2023 (ACCESSWIRE) — Via Renewables, Inc. (“Via Renewables” or the “Company”) (NASDAQ: VIA, VIASP), an independent retail energy services company, today reported financial results for the quarter ended March 31, 2023.

Key Highlights

Reported $(6.8) million in Net Loss and $18.8 million in Adjusted EBITDA for the first quarter
Achieved $14.4 million in Gross Profit and expanded Retail Gross Margin to $40.3 million for the first quarter
Total RCE count of 339,000 as of March 31, 2023, up from 331,000 as of December 31, 2022
Total liquidity of $75.4 million as of March 31, 2023

“We are pleased with the strong first quarter results despite some milder than normal weather as commodity prices continued their path downward from the fourth quarter. We were able to grow our customer base organically and have expanded to an additional deregulated state that we currently operate in, bringing the total to 20,” said Keith Maxwell, Via Renewables’ President and Chief Executive Officer.

Summary First Quarter 2023 Financial Results

Net Loss for the quarter ended March 31, 2023, was $(6.8) million compared to Net Income of $31.0 million for the quarter ended March 31, 2022. $54.6 million of the decrease, compared to the prior year, was the result of a reduction in the mark-to-market on our hedges we put in place to lock in margins on our retail contracts. The decrease in Net Income was partially offset by a reduction of $8.0 million in income tax expense and a $1.8 million reduction in depreciation and amortization expense.

For the quarter ended March 31, 2023, Via Renewables reported Adjusted EBITDA of $18.8 million compared to Adjusted EBITDA of $10.8 million for the quarter ended March 31, 2022, an increase of 74% year over year. The $8.0 million increase was driven by an increase in both our power and natural gas gross margin and was partially offset by an increase in G&A and CAC spend versus the first quarter of 2022.

For the quarter ended March 31, 2023, Via Renewables reported Gross Profit of $14.4 million compared to Gross Profit of $58.5 million for the quarter ended March 31, 2022. The decrease, compared to the prior year, was largely the result of a reduction in the mark-to-market on our hedges.

For the quarter ended March 31, 2023, Via Renewables reported Retail Gross Margin of $40.3 million compared to Retail Gross Margin of $28.8 million for the quarter ended March 31, 2022. The $11.5 million increase in Retail Gross Margin is mainly due to higher unit margins offset by decreased volumes for both power and natural gas.

Liquidity and Capital Resources

($ in thousands)	March 31, 2023
Cash and cash equivalents	$ 45,162
Senior Credit Facility Availability ⁽¹⁾	20,190
Subordinated Debt Facility Availability ⁽²⁾	10,000
Total Liquidity	$ 75,352

(1) Reflects amount of Letters of Credit that could be issued based on existing covenants as of March 31, 2023.

(2) The availability of the Subordinated Facility is dependent on our Founder’s discretion.

Dividend

On April 19, 2023, Via Renewables declared a dividend in the amount of $0.73989 per share for the Series A Preferred Stock for the first quarter of 2023. Dividends on Series A Preferred Stock will be paid on July 17, 2023 to holders of record on July 1, 2023. Additionally, the Company announced that its Board of Directors had elected to temporarily suspend the quarterly cash dividend on the common stock to better enhance its financial flexibility and strengthen its balance sheet. Via Renewables will continue to closely monitor market conditions and the Board will thoughtfully evaluate the timing of for reinstatement of the Class A common stock dividend.

Business Outlook

Mr. Maxwell concluded, “We’re focused on our financial flexibility so that we may manage any potential market volatility headed into the summer months. We also remain dedicated to prioritizing shareholders’ interests, strengthening our balance sheet and investing in both organic and inorganic growth to drive long term shareholder value.”

Conference Call and Webcast

Via Renewables will host a conference call to discuss First Quarter 2023 results on Thursday, May 4, 2023, at 10:00 AM Central Time (11:00 AM Eastern).

About Via Renewables, Inc.

Via Renewables, Inc. is an independent retail energy services company founded in 1999 that provides residential and commercial customers in competitive markets across the United States with an alternative choice for natural gas and electricity. Headquartered in Houston, Texas, Via Renewables currently operates in 103 utility service territories across 20 states and the District of Columbia. Via Renewables offers its customers a variety of product and service choices, including stable and predictable energy costs and green product alternatives.

We use our website as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Investors should note that new materials, including press releases, updated investor presentations, and financial and other filings with the Securities and Exchange Commission are posted on the Via Renewables Investor Relations website at https://viarenewables.com/. Investors are urged to monitor our website regularly for information and updates about the Company.

Cautionary Note Regarding Forward Looking Statements

This earnings release contains forward-looking statements that are subject to a number of risks and uncertainties, many of which are beyond our control. These forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), can be identified by the use of forward-looking terminology including “may,” “should,” “could, ” “likely,” “will,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “plan,” “intend,” “project,” or other similar words. All statements, other than statements of historical fact, included in this earnings release are forward-looking statements. The forward-looking statements include statements regarding the impacts of the 2021 severe weather event, cash flow generation and liquidity, business strategy, prospects for growth and acquisitions, outcomes of legal proceedings, the timing, availability, ability to pay and implied amount of cash dividends and distributions on our Class A common stock and Series A Preferred Stock, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans, objectives, beliefs of management, availability and terms of capital, competition, government regulation and general economic conditions. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we cannot give any assurance that such expectations will prove correct.

our ability to remediate the material weakness in our internal control over financial reporting, the identification of any additional material weakness in the future or otherwise failing to maintain an effective system of internal controls;
the ultimate impact of the 2021 severe weather event, including future benefits or costs related to ERCOT market securitization efforts, and any corrective action by the State of Texas, ERCOT, the Railroad Commission of Texas, or the Public Utility Commission of Texas;
changes in commodity prices, the margins we achieve and interest rates;
the sufficiency of risk management and hedging policies and practices;
the impact of extreme and unpredictable weather conditions, including hurricanes and other natural disasters;
federal, state and local regulations, including the industry’s ability to address or adapt to potentially restrictive new regulations that may be enacted by public utility commissions;
our ability to borrow funds and access credit markets;
restrictions and covenants in our debt agreements and collateral requirements;
credit risk with respect to suppliers and customers;
our ability to acquire customers and actual attrition rates;
changes in costs to acquire customers;
accuracy of billing systems;
our ability to successfully identify, complete, and efficiently integrate acquisitions into our operations;
significant changes in, or new changes by, the independent system operators (“ISOs”) in the regions we operate;
competition; and
the “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022, and other public filings and press releases.

For further information, please contact:

Investor Relations:

Stephen Rabalais,

832-200-3727

Media Relations:

Kira Jordan,

832-255-7302

VIA RENEWABLES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

	Three Months Ended March 31,
	2023	2022
Revenues:
Retail revenues	$ 135,125	$ 128,058
Net asset optimization expense	(3,273)	(904)
Total Revenues	131,852	127,154
Operating Expenses:
Retail cost of revenues	117,441	68,707
General and administrative	17,225	14,935
Depreciation and amortization	3,336	5,184
Total Operating Expenses	138,002	88,826
Operating (loss) income	(6,150)	38,328
Other (expense) income:
Interest expense	(2,697)	(1,307)
Interest and other income	80	48
Total other expenses	(2,617)	(1,259)
(Loss) income before income tax expense	(8,767)	37,069
Income tax (benefit) expense	(1,996)	6,044
Net (loss) income	$ (6,771)	$ 31,025
Less: Net (loss) income attributable to non-controlling interests	(6,584)	18,052
Net (loss) income attributable to Via Renewables, Inc. stockholders	$ (187)	$ 12,973
Less: Dividend on Series A Preferred Stock	2,544	1,951
Net (loss) income attributable to stockholders of Class A common stock	$ (2,731)	$ 11,022

Net (loss) income attributable to Via Renewables, Inc. per share of Class A common stock
Basic	$ (0.86)	$ 3.52
Diluted	$ (1.26)	$ 3.49

Weighted average shares of Class A common stock outstanding
Basic	3,173	3,131
Diluted	7,173	3,159

Selected Balance Sheet Data
(in thousands)	March 31, 2023	December 31, 2022
Cash and cash equivalents	$ 45,162	$ 33,658
Working capital	77,631	86,759
Total assets	318,973	330,950
Total debt	126,000	120,000
Total liabilities	217,890	214,901
Total stockholders’ equity	37,756	42,570

Selected Cash Flow Data
	Three Months Ended March 31,
(in thousands)	2023	2022
Cash flows provided by operating activities	$ 13,060	$ 4,583
Cash flows used in investing activities	(374)	(3,598)
Cash flows used in financing activities	(2,875)	(22,525)

Operating Segment Results

(in thousands, except volume and per unit operating data)	Three Months Ended March 31,
	2023	2022

Retail Electricity Segment
Total Revenues	$ 82,827	$ 88,041
Retail Cost of Revenues	80,830	46,160
Less: Net (loss) gain on non-trading derivatives, net of cash settlements	(18,472)	24,695
Retail Gross Margin⁽¹⁾ — Electricity	$ 20,469	$ 17,186
Volumes — Electricity (MWhs)	456,277	685,152
Retail Gross Margin ⁽²⁾— Electricity per MWh	$ 44.86	$ 25.08

Retail Natural Gas Segment
Total Revenues	$ 52,298	$ 40,017
Retail Cost of Revenues	36,611	22,547
Less: Net gain on non-trading derivatives, net of cash settlements	(4,174)	5,901
Retail Gross Margin ⁽¹⁾— Gas	$ 19,861	$ 11,569
Volumes — Gas (MMBtus)	4,547,826	4,657,118
Retail Gross Margin ⁽²⁾— Gas per MMBtu	$ 4.37	$ 2.48

(2) Reflects the Retail Gross Margin for the Retail Electricity Segment or Retail Natural Gas Segment, as applicable, divided by the total volumes in MWh or MMBtu, respectively.

Reconciliation of GAAP to Non-GAAP Measures

Adjusted EBITDA

We deduct our net gains (losses) on derivative instruments, excluding current period cash settlements, from the Adjusted EBITDA calculation in order to remove the non-cash impact of net gains and losses on these instruments. We also deduct non-cash compensation expense that results from the issuance of restricted stock units under our long-term incentive plan due to the non-cash nature of the expense. We adjust from time to time other non-cash or unusual and/or infrequent charges due to either their non-cash nature or their infrequency. We have historically included the financial impact of weather variability in the calculation of Adjusted EBITDA.

our operating performance as compared to other publicly traded companies in the retail energy industry, without regard to financing methods, capital structure, historical cost basis and specific items not reflective of ongoing operations;
the ability of our assets to generate earnings sufficient to support our proposed cash dividends;
our ability to fund capital expenditures (including customer acquisition costs) and incur and service debt; and
our compliance with financial debt covenants in our Senior Credit Facility.

Retail Gross Margin

We believe retail gross margin provides information useful to investors as an indicator of our retail energy business’s operating performance.

The following tables present a reconciliation of Adjusted EBITDA to net income (loss) and net cash provided (used in) operating activities for each of the periods indicated.

Reconciliation of Adjusted EBITDA to net (loss) income:
	Three Months Ended March 31,
(in thousands)	2022	2021
Net (loss) income	$ (6,771)	$ 31,025
Depreciation and amortization	3,336	5,184
Interest expense	2,697	1,307
Income tax (benefit) expense	(1,996)	6,044
EBITDA	(2,734)	43,560
Less:
Net, (loss) gain on derivative instruments	(42,770)	45,063
Net cash settlements on derivative instruments	20,137	(13,136)
Customer acquisition costs	1,773	1,196
Plus:
Non-cash compensation expense	685	351
Adjusted EBITDA	$ 18,811	$ 10,788

Reconciliation of Adjusted EBITDA to net cash provided by operating activities:
	Three Months Ended March 31,
(in thousands)	2023	2022
Net cash provided by operating activities	$ 13,060	$ 4,583
Amortization of deferred financing costs	(206)	(245)
Bad debt expense	(955)	(1,024)
Interest expense	2,697	1,307
Income tax (benefit) expense	(1,996)	6,044
Changes in operating working capital
Accounts receivable, prepaids, current assets	(14,075)	555
Inventory	(3,849)	(1,874)
Accounts payable and accrued liabilities	21,587	5,577
Other	2,548	(4,135)
Adjusted EBITDA	$ 18,811	$ 10,788
Cash Flow Data:
Net cash provided by operating activities	$ 13,060	$ 4,583
Net cash used in investing activities	$ (374)	$ (3,598)
Net cash used in financing activities	$ (2,875)	$ (22,525)

The following table presents a reconciliation of Retail Gross Margin to Gross Profit for each of the periods indicated.

Reconciliation of Retail Gross Margin to Gross Profit
	Three Months Ended March 31,
(in thousands)	2023	2022
Total Revenue	$ 131,852	$ 127,154
Less:
Retail cost of revenues	117,441	68,707
Gross Profit	$ 14,411	$ 58,447
Less:
Net asset optimization expense	(3,273)	(904)
(Loss) gain on non-trading derivative instruments	(42,769)	43,916
Cash settlements on non-trading derivative instruments	20,123	(13,320)
Retail Gross Margin	$ 40,330	$ 28,755
Retail Gross Margin – Retail Electricity Segment	$ 20,469	$ 17,186
Retail Gross Margin – Retail Natural Gas Segment	$ 19,861	$ 11,569