HOUSTON, TX / ACCESSWIRE / March 1, 2023 / Via Renewables, Inc. (“Via Renewables” or the “Company”) (NASDAQ:VIA)(NASDAQ:VIASP), an independent retail energy services company, today announced that it has rescheduled its fourth quarter and full year 2022 earnings conference call. The Company will announce its earnings and conference call schedule in a future press release.
The earnings release and conference call is being rescheduled due to a delay in finalizing the Company’s Form 10-K for the year ended December 31, 2022. The rescheduling will provide for additional time for the Company to review and finalize its calculation of its deferred tax asset and liabilities and related impact on income tax expense for the year ended December 31, 2022 and assess the impact to prior years, if any, as well as complete the Company’s assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2022
While the work is not yet finalized, the Company does not expect any changes to the Adjusted EBITDA, Gross Profit/Loss or Retail Gross Margin it expected to report in December 31, 2022, or in prior fiscal years.
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 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 102 utility service territories across 19 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.
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 earnings release are forward-looking statements. The forward-looking statements include statements regarding the anticipated timing of finalizing our Form 10-K for the year ended December 31, 2022, the earnings release and conference call and the impact of finalizing our audit. 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. 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.
HOUSTON, TX / ACCESSWIRE / February 8, 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 full year and fourth quarter 2022 financial results in a conference call and webcast on Thursday, March 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 19 states and serves 102 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.
HOUSTON, TX / ACCESSWIRE / January 18, 2023 /Via Renewables, Inc. (“Via Renewables” or the “Company”) (NASDAQ:VIA)(NASDAQ:VIASP), an independent retail energy services company, announced today that its Board of Directors has declared a quarterly cash dividend for the fourth quarter of 2022 in the amount of $0.18125 per share on its Class A Common Stock. This amount represents an annualized dividend of $0.725 per share. The fourth quarter dividend will be paid on March 15, 2023 to holders of record of Via Renewables’ Class A Common Stock on March 1, 2023.
Additionally, 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 $0.71298 per share on the Series A Preferred Stock. The dividend will be paid on April 17, 2023 to holders of record of Via Renewables’ Series A Preferred Stock on April 1, 2023. The floating rate period for the Series A Preferred Stock began on April 15, 2022.
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 19 states and serves 102 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.
HOUSTON, TX / ACCESSWIRE / November 2, 2022 / Via Renewables, Inc. (“Via Renewables” or the “Company”) (NASDAQ:VIA)(NASDAQ:VIASP), an independent retail energy services company, today reported financial results for the quarter ended September 30, 2022.
Key Highlights
Reported $(4.9) million in Net Loss and $15.1 million in Adjusted EBITDA for the third quarter
Achieved $16.6 million in Gross Profit and $30.5 million in Retail Gross Margin for the third quarter
Total RCE count of 336,000 as of September 30, 2022
Total Liquidity of $67.7 million as of September 30, 2022
“Via is pleased to announce that in August 2022 we entered into an agreement to acquire a book of retail natural gas customers consisting of approximately 18,700 RCEs in the Florida market. There was no upfront cost and the acquisition will be immediately accretive to Adjusted EBITDA beginning in the third quarter of 2022. In addition, to grow the book, Via significantly increased its customer acquisition spend, spending $1.7 million in the third quarter of 2022 compared to $0.3 million in the third quarter of 2021.” said Keith Maxwell, Via Renewables’ President and Chief Executive Officer.
Summary Third Quarter 2022 Financial Results
Net Loss for the quarter ended September 30, 2022, was $(4.9) million compared to Net Income of $34.7 million for the quarter ended September 30, 2021. $41.9 million of the decrease was the result of a reduction in the mark-to-market on our hedges, compared to the prior year. The decrease in Net Income was partially offset by a reduction in both income tax expense and depreciation and amortization expense.
For the quarter ended September 30, 2022, Via Renewables reported Adjusted EBITDA of $15.1 million compared to Adjusted EBITDA of $22.0 million for the quarter ended September 30, 2021. Lower Adjusted EBITDA was driven mainly by a reduction of a legal accrual and a payroll tax credit in the third quarter of 2021. In addition we also had higher customer acquisition spend.
For the quarter ended September 30, 2022, Via Renewables reported Gross Profit of $16.6 million compared to Gross Profit of $57.7 million for the quarter ended September 30, 2021. 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 September 30, 2022, Via Renewables reported Retail Gross Margin of $30.5 million compared to Retail Gross Margin of $30.9 million for the quarter ended September 30, 2021. Higher volumes offset by lower unit margins resulted in a decrease in our Gas Retail Gross Margin. Lower volumes offset by higher unit margins resulted in an increase in our Electric Retail Gross Margin.
Liquidity and Capital Resources
($ in thousands)
September 30, 2022
Cash and cash equivalents
$
40,403
Senior Credit Facility Availability (1)
22,247
Subordinated Debt Facility Availability (2)
5,000
Total Liquidity
$
67,650
(1) Reflects amount of Letters of Credit that could be issued based on existing covenants as of September 30, 2022.
(2) The availability of the Subordinated Facility is dependent on our Founder’s discretion.
Dividend
On October 20, 2022, Via Renewables’ Board of Directors declared quarterly dividends of $0.18125 per share on its Class A common stock payable on December 15, 2022 to holders of record on December 1, 2022, and $0.666071 per share on its Series A Preferred Stock payable on January 17, 2023 to holders of record on January 1, 2023.
Business Outlook
Mr. Maxwell concluded, “We’re beginning to see Utilities raise rates to keep up with rising energy prices, which presents an opportunity for Via to be a more competitive option. Heading into the winter, we’re positioned well to navigate these rising commodity prices. At the same time, Via is also enjoying an uptick in organic sales while also evaluating potential book acquisitions. Via’s goal is to leverage our industry knowledge and business relationships to continue to grow our book and drive long term sustainable growth.”
Conference Call and Webcast
Via will host a conference call to discuss third quarter2022 results on Thursday, November 3, 2022, 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 102 utility service territories across 19 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.
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, ability to pay and 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, governmental 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:
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 cost 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, 2021, 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,
2022
2021
2022
2021
Revenues:
Retail revenues
$
117,187
$
98,267
$
343,592
$
293,721
Net asset optimization revenue (expense)
1,672
(288)
(480)
(542)
Total Revenues
118,859
97,979
343,112
293,179
Operating Expenses:
Retail cost of revenues
102,212
40,298
232,621
198,642
General and administrative
16,302
9,719
44,820
33,053
Depreciation and amortization
3,270
5,049
13,390
16,498
Total Operating Expenses
121,784
55,066
290,831
248,193
Operating (loss) income
(2,925)
42,913
52,281
44,986
Other (expense) income:
Interest expense
(2,002)
(1,298)
(5,129)
(4,161)
Interest and other income
11
63
265
228
Total other expenses
(1,991)
(1,235)
(4,864)
(3,933)
(Loss) income before income tax expense
(4,916)
41,678
47,417
41,053
Income tax (benefit) expense
(48)
7,021
8,726
9,160
Net (loss) income
$
(4,868)
$
34,657
$
38,691
$
31,893
Less: Net (loss) income attributable to non-controlling interests
(3,987)
19,774
21,981
14,158
Net (loss) income attributable to Via Renewables, Inc. stockholders
$
(881)
$
14,883
$
16,710
$
17,735
Less: Dividend on Series A Preferred Stock
2,026
1,951
5,677
5,853
Net (loss) income attributable to stockholders of Class A common stock
$
(2,907)
$
12,932
$
11,033
$
11,882
Net (loss) income attributable to Via Renewables, Inc. per share of Class A common stock
Basic
$
(0.18)
$
0.83
$
0.70
$
0.79
Diluted
$
(0.18)
$
0.82
$
0.70
$
0.79
Weighted average shares of Class A common stock outstanding
Basic
15,858
15,572
15,754
14,965
Diluted
15,858
15,686
15,863
15,099
Selected Balance Sheet Data
(in thousands)
September 30, 2022
December 31, 2021
Cash and cash equivalents
40,403
68,899
Working capital
120,322
114,188
Total assets
328,154
355,276
Total debt
113,000
135,000
Total liabilities
174,931
217,637
Total stockholders’ equity
58,020
53,352
Selected Cash Flow Data
Nine Months Ended September 30,
(in thousands)
2022
2021
Net cash provided by operating activities
$
21,211
$
18,772
Net cash used in investing activities
$
(6,400)
$
(3,689)
Net cash (used in) provided by financing activities
$
(47,780)
$
11,352
Operating Segment Results
(in thousands, except volume and per unit operating data)
Three Months Ended September 30,
Nine Months Ended September 30,
2022
2021
2022
2021
Retail Electricity Segment
Total Revenues
$
104,970
$
92,104
$
275,301
$
242,548
Retail Cost of Revenues
92,816
41,035
189,092
179,762
Less: Net (loss) gain on non-trading derivatives, net of cash settlements
(16,353)
22,359
14,240
46,711
Non-recurring event – Winter Storm Uri
–
497
9,565
(64,403)
Retail Gross Margin (1) – Electricity
$
28,507
$
28,213
$
62,404
$
80,478
Volumes – Electricity (MWhs) (3)
694,035
777,340
1,982,684
2,013,468
Retail Gross Margin (2) (4) – Electricity per MWh
$
41.07
$
36.29
$
31.47
$
39.97
Retail Natural Gas Segment
Total Revenues
$
12,217
$
6,163
$
68,291
$
51,173
Retail Cost of Revenues
9,396
(737)
43,529
18,880
Less: Net gain on non-trading derivatives, net of cash settlements
872
4,243
4,263
5,449
Retail Gross Margin (1) – Gas
$
1,949
$
2,657
$
20,499
$
26,844
Volumes – Gas (MMBtus)
1,170,857
668,063
7,771,468
5,765,588
Retail Gross Margin (2) – Gas per MMBtu
$
1.67
$
3.98
$
2.64
$
4.66
(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 “Non-GAAP Performance Measures” for a reconciliation of Retail Gross Margin to its 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.
(3) Excludes volumes (8,402 MWhs) related to Winter Storm Uri impact for the nine months ended September, 30, 2021.
(4) Retail Gross Margin – Electricity per MWh excludes Winter Storm Uri impact for the nine months ended September 30, 2021.
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 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. 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 performance and results of operations and that Adjusted EBITDA is also useful for an understanding of our financial condition and/or liquidity due to its use in covenants in our Senior Credit Facility. 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 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.
The GAAP measures most directly comparable to Adjusted EBITDA are net income (loss) and net cash provided by (used in) operating activities. The GAAP measure most directly comparable to Retail Gross Margin is gross profit. 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 (loss) and net cash provided (used in) 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)
2022
2021
2022
2021
Net (loss) income
$
(4,868)
$
34,657
$
38,691
$
31,893
Depreciation and amortization
3,270
5,049
13,390
16,498
Interest expense
2,002
1,298
5,129
4,161
Income tax (benefit) expense
(48)
7,021
8,726
9,160
EBITDA
356
48,025
65,936
61,712
Less:
Net (loss) gain on derivative instruments
(1,645)
31,798
55,815
57,726
Net cash settlements on derivative instruments
(14,078)
(5,660)
(35,922)
(6,050)
Customer acquisition costs
1,684
309
4,274
765
Plus:
Non-cash compensation expense
668
441
2,590
2,012
Non-recurring event – Winter Storm Uri
–
–
(5,162)
60,000
Non-recurring legal settlement
–
–
–
(2,225)
Adjusted EBITDA
$
15,063
$
22,019
$
39,197
$
69,058
Reconciliation of Adjusted EBITDA to net cash provided by operating activities:
Three Months Ended September 30,
Nine Months Ended September 30,
(in thousands)
2022
2021
2022
2021
Net cash provided by operating activities
$
8,267
$
9,604
$
21,211
$
18,772
Amortization of deferred financing costs
(206)
(275)
(919)
(792)
Bad debt expense
(1,062)
(492)
(2,895)
(379)
Interest expense
2,002
1,298
5,129
4,161
Income tax (benefit) expense
(48)
7,021
8,726
9,160
Non-recurring event – Winter Storm Uri
–
–
(5,162)
60,000
Non-recurring legal settlement
–
–
–
(2,225)
Changes in operating working capital
Accounts receivable, prepaids, current assets
2,144
6,456
(7,229)
(25,305)
Inventory
2,883
1,448
3,292
1,048
Accounts payable and accrued liabilities
508
2,952
21,306
15,809
Other
575
(5,993)
(4,262)
(11,191)
Adjusted EBITDA
$
15,063
$
22,019
$
39,197
$
69,058
Cash Flow Data:
Net cash provided by operating activities
$
8,267
$
9,604
$
21,211
$
18,772
Net cash used in investing activities
$
(1,240)
$
(2,626)
$
(6,400)
$
(3,689)
Net cash (used in) provided by financing activities
$
(10,199)
$
(13,399)
$
(47,780)
$
11,352
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)
2022
2021
2022
2021
Total Revenue
$
118,859
$
97,979
$
343,112
$
293,179
Less:
Retail cost of revenues
102,212
40,298
232,621
198,642
Gross Profit
16,647
57,681
110,491
94,537
Less:
Net asset optimization revenue (expense)
1,672
(288)
(480)
(542)
(Loss) gain on non-trading derivative instruments
(1,413)
32,262
54,570
58,214
Cash settlements on non-trading derivative instruments
(1) Retail Gross Margin – Retail Electricity Segment for the three months ended September 30, 2021 includes a $0.5 million reduction related to the Winter Storm Uri credit settlements received and for the nine months ended September 30, 2021 includes a $64.9 million add back related to Winter Storm Uri.
(2) 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.
HOUSTON, TX / ACCESSWIRE / October 21, 2022 / 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 2022 financial results in a conference call and webcast on Thursday, November 3, 2022 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 19 states and serves 102 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.
HOUSTON, TX / ACCESSWIRE / October 20, 2022 / Via Renewables, Inc. (“Via Renewables” or the “Company”) (NASDAQ:VIA; VIASP), an independent retail energy services company, announced today that its Board of Directors has declared a quarterly cash dividend for the third quarter of 2022 in the amount of $0.18125 per share on its Class A Common Stock. This amount represents an annualized dividend of $0.725 per share. The third quarter dividend will be paid on December 15, 2022 to holders of record of Via Renewables’ Class A Common Stock on December 1, 2022.
Additionally, 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 $0.666071 per share on the Series A Preferred Stock. The dividend will be paid on January 17, 2023 to holders of record of Via Renewables’ Series A Preferred Stock on January 1, 2023. The floating rate period for the Series A Preferred Stock began on April 15, 2022.
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 19 states and serves 102 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.
HOUSTON, August 3, 2022 (ACCESSWIRE) — Via Renewables, Inc. (“Via Renewables” or the “Company”) (NASDAQ:VIA)(NASDAQ:VIASP), an independent retail energy services company, today reported financial results for the quarter ended June 30, 2022.
Key Highlights
Achieved $12.5 million in Net Income and $13.3 million in Adjusted EBITDA for the second quarter
Achieved $35.4 million in Gross Profit and $23.7 million in Retail Gross Margin for the second quarter
Total RCE count of 368,000 as of June 30, 2022
Average monthly attrition of 3.1% compared to 3.3% in second quarter 2021
Total liquidity of $71.1 million as of June 30, 2022
“Via Renewables is pleased to announce that we have entered into a new $195 million Credit Facility, which replaced the existing facility, on June 30, 2022. The new facility creates increased operating flexibility and a competitive long term capital structure. In the second quarter of 2022, we were able to increase our customer acquisition spend considerably from the second quarter of 2021. We’ve been hitting our telemarketing goals while continuing to ramp our D2D channels. Attrition has slightly decreased compared to the second quarter of 2021 even with increased sales due to climbing market rates. Customers are finding it harder to shop rates with both utilities and retail providers raising rates to keep up with the rising cost of energy.” said Keith Maxwell, Via Renewables’ President and Chief Executive Officer.
Summary Second Quarter 2022 Financial Results
Net income for the quarter ended June 30, 2022, was $12.5 million compared to net income of $24.8 million for the quarter ended June 30, 2021. The decrease, compared to the prior year, was largely the result of a reduction in mark-to-market on our hedges, partially offset by a reduction in income tax expense, depreciation, and amortization expense.
For the quarter ended June 30, 2022, Via Renewables reported Adjusted EBITDA of $13.3 million compared to Adjusted EBITDA of $14.4 million for the quarter ended June 30, 2021. Lower quarter over quarter Adjusted EBITDA is driven by lower electricity and natural gas unit margins due to rising commodity prices, higher CAC spend and higher G&A expenses. It’s offset by a $4.4 million non-recurring addback, which is the result of receiving $9.6 million from ERCOT related to Winter Storm Uri. The additional $5.2 million benefit was taken in the first quarter of 2021.
For the quarter ended June 30, 2022, Via Renewables reported Gross Profit of $35.4 million compared to Gross Profit of $46.0 million for the quarter ended June 30, 2021. The decrease, compared to the prior year, was largely the result of a reduction in mark-to-market on our hedges partially offset by the $9.6 million received from ERCOT related to Winter Storm Uri. Additionally, while revenue increased in the second quarter of 2022, it was offset by higher cost of revenues due to rapidly rising commodity prices compared to the second quarter of 2021.
For the quarter ended June 30, 2022, Via Renewables reported Retail Gross Margin of $23.7 million compared to Retail Gross Margin of $26.4 million for the quarter ended June 30, 2021. Increasing commodity prices were the driving factor in the decrease partially offset by higher natural gas volumes.
Liquidity and Capital Resources
($ in thousands)
June 30, 2022
Cash and cash equivalents
$
43,196
Senior Credit Facility Availability (1)
22,914
Subordinated Debt Facility Availability (2)
5,000
Total Liquidity
$
71,110
(1) Reflects amount of Letters of Credit that could be issued based on existing covenants as of June 30, 2022. (2) The availability of the Subordinated Facility is dependent on our Founder’s discretion.
Dividend
On July 20, 2022, Via Renewables’ Board of Directors declared quarterly dividends of $0.18125 per share on its Class A common stock payable on September 15, 2022 to holders of record on September 1, 2022, and $0.568125 per share on its Series A Preferred Stock payable on October 17, 2022 to holders of record on October 3, 2022.
Business Outlook
Mr. Maxwell concluded, “Our focus is on optimizing our book and operationalizing in today’s turbulent market climate, which includes record demand and volatile commodity prices. In order to drive growth, we will continue to expand our organic sales channels and new product offerings, along with actively pursuing potential acquisitions to complement our customer portfolio.”
Conference Call and Webcast
Via will host a conference call to discuss second quarter 2022 results on Thursday, August 4, 2022, 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 102 utility service territories across 19 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.
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 COVID-19 and the 2021 severe weather event, cash flow generation and liquidity, business strategy, prospects for growth and acquisitions, outcomes of legal proceedings, ability to pay and 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, governmental 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:
evolving risks, uncertainties and impacts relating to COVID-19, including the geographic spread, the severity of the disease, the scope and duration of the COVID-19 outbreak, actions that may be taken by governmental authorities to contain the COVID-19 outbreak or to treat its impact, and the potential for continuing negative impacts of COVID-19 on economies and financial markets;
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 receive 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 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 cost 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, 2021, 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 June 30,
Six Months Ended June 30,
2022
2021
2022
2021
Revenues:
Retail revenues
$
98,347
$
82,309
$
226,405
$
195,454
Net asset optimization (expense)
(1,248)
(114)
(2,152)
(254)
Total Revenues
97,099
82,195
224,253
195,200
Operating Expenses:
Retail cost of revenues
61,702
36,176
130,409
158,344
General and administrative
13,583
10,663
28,518
23,334
Depreciation and amortization
4,936
5,413
10,120
11,449
Total Operating Expenses
80,221
52,252
169,047
193,127
Operating income
16,878
29,943
55,206
2,073
Other (expense)/income:
Interest expense
(1,820)
(1,552)
(3,127)
(2,863)
Interest and other income
206
79
255
165
Total other expenses
(1,614)
(1,473)
(2,872)
(2,698)
Income (loss) before income tax expense
15,264
28,470
52,334
(625)
Income tax expense
2,730
3,674
8,774
2,139
Net income (loss)
$
12,534
$
24,796
$
43,560
$
(2,764)
Less: Net income (loss) attributable to non-controlling interests
7,916
14,313
25,968
(5,616)
Net income attributable to Via Renewables, Inc. stockholders
$
4,618
$
10,483
$
17,592
$
2,852
Less: Dividend on Series A Preferred Stock
1,700
1,951
3,651
3,902
Net income (loss) attributable to stockholders of Class A common stock
$
2,918
$
8,532
$
13,941
$
(1,050)
Net income (loss) attributable to Via Renewables, Inc. per share of Class A common stock
Basic
$
0.19
$
0.58
$
0.89
$
(0.07)
Diluted
$
0.18
$
0.58
$
0.88
$
(0.07)
Weighted average shares of Class A common stock outstanding
Basic
15,745
14,685
15,701
14,656
Diluted
15,776
14,821
15,793
14,767
Selected Balance Sheet Data
(in thousands)
June 30, 2022
December 31, 2021
Cash and cash equivalents
43,196
68,899
Working capital
141,784
114,188
Total assets
348,817
355,276
Total debt
115,000
135,000
Total liabilities
183,149
217,637
Total stockholders’ equity
63,366
53,352
Selected Cash Flow Data
Six Months Ended June 30,
(in thousands)
2022
2021
Net cash provided by operating activities
$
12,944
$
9,168
Net cash used in investing activities
$
(5,160)
$
(1,063)
Net cash (used in) provided by financing activities
$
(37,581)
$
24,751
Operating Segment Results
(in thousands, except volume and per unit operating data)
Three Months Ended June 30,
Six Months Ended June 30,
2022
2021
2022
2021
Retail Electricity Segment
Total Revenues
$
82,290
$
71,689
$
170,331
$
150,444
Retail Cost of Revenues
50,116
31,203
96,276
138,727
Less: Net gain on non-trading derivatives, net of cash settlements
5,898
18,835
30,593
24,352
Non-recurring event – Winter Storm Uri
9,565
–
9,565
(64,900)
Retail Gross Margin (1) – Electricity
$
16,711
$
21,651
$
33,897
$
52,265
Volumes – Electricity (MWhs) (3)
603,497
614,000
1,288,649
1,236,127
Retail Gross Margin (2) (4) – Electricity per MWh
$
27.69
$
35.26
$
26.30
$
42.28
Retail Natural Gas Segment
Total Revenues
$
16,057
$
10,620
$
56,074
$
45,010
Retail Cost of Revenues
11,586
4,973
34,133
19,617
Less: Net gain (loss) on non-trading derivatives, net of cash settlements
(2,510)
858
3,391
1,206
Retail Gross Margin (1) – Gas
$
6,981
$
4,789
$
18,550
$
24,187
Volumes – Gas (MMBtus)
1,943,494
1,268,051
6,600,612
5,097,525
Retail Gross Margin (2) – Gas per MMBtu
$
3.59
$
3.78
$
2.81
$
4.75
(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 “Non-GAAP Performance Measures” for a reconciliation of Retail Gross Margin to its 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. (3) Excludes volumes (8,402 MWhs) related to Winter Storm Uri impact for the six months ended June, 30, 2021. (4) Retail Gross Margin – Electricity per MWh excludes Winter Storm Uri impact for the six months ended June 30, 2021.
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 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. 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 three and six months ended June 30, 2022.
We believe that the presentation of Adjusted EBITDA provides information useful to investors in assessing our performance and results of operations and that Adjusted EBITDA is also useful for an understanding of our financial condition and/or liquidity due to its use in covenants in our Senior Credit Facility. 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 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 GAAP measures most directly comparable to Adjusted EBITDA are net income (loss) and net cash provided by operating activities. The GAAP measure most directly comparable to Retail Gross Margin is gross profit. 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 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 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 (loss) and net cash provided (used in) operating activities for each of the periods indicated.
Reconciliation of Adjusted EBITDA to net income (loss):
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands)
2022
2021
2022
2021
Net income (loss)
$
12,534
$
24,796
$
43,560
$
(2,764)
Depreciation and amortization
4,936
5,413
10,120
11,449
Interest expense
1,820
1,552
3,127
2,863
Income tax expense
2,730
3,674
8,774
2,139
EBITDA
22,020
35,435
65,581
13,687
Less:
Net, gain on derivative instruments
12,397
18,904
57,460
25,928
Net cash settlements on derivative instruments
(8,708)
795
(21,844)
(390)
Customer acquisition costs
1,394
243
2,590
456
Plus:
Non-cash compensation expense
1,571
1,104
1,922
1,571
Non-recurring event – Winter Storm Uri
(5,162)
–
(5,162)
60,000
Non-recurring legal settlement
–
(2,225)
)
–
(2,225)
Adjusted EBITDA
$
13,346
$
14,372
$
24,135
$
47,039
Reconciliation of Adjusted EBITDA to net cash provided by operating activities:
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands)
2022
2021
2022
2021
Net cash provided by operating activities
$
8,361
$
32,800
$
12,944
$
9,168
Amortization of deferred financing costs
(468)
(258)
(713)
(517)
Bad debt expense
(809)
(134)
(1,833)
113
Interest expense
1,820
1,552
3,127
2,863
Income tax expense
2,730
3,674
8,774
2,139
Non-recurring event – Winter Storm Uri
(5,162)
–
(5,162)
60,000
Non-recurring legal settlement
–
(2,225)
–
(2,225)
Changes in operating working capital
Accounts receivable, prepaids, current assets
(9,928)
(20,058)
(9,373)
(31,761)
Inventory
2,283
965
409
(400)
Accounts payable and accrued liabilities
15,221
8,059
20,798
12,857
Other
(702)
(10,003)
(4,836)
(5,198)
Adjusted EBITDA
$
13,346
$
14,372
$
24,135
$
47,039
Cash Flow Data:
Net cash provided by operating activities
$
8,361
$
32,800
$
12,944
$
9,168
Net cash used in investing activities
$
(1,562)
$
(543)
$
(5,160)
$
(1,063)
Net cash (used in) provided by financing activities
$
(15,056)
$
(9,208)
$
(37,581)
$
24,751
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)
2022
2021
2022
2021
Total Revenue
$
97,099
$
82,195
$
224,253
$
195,200
Less:
Retail cost of revenues
61,702
36,176
130,409
158,344
Gross Profit
35,397
46,019
93,844
36,856
Less:
Net asset optimization (expense)
(1,248)
(114)
(2,152)
(254)
Gain on non-trading derivative instruments
12,067
18,898
55,983
25,952
Cash settlements on non-trading derivative instruments
(1) Retail Gross Margin – Retail Electricity Segment for the six months ended June 30, 2021 includes a $64.9 million add back related to Winter Storm Uri.
(2) 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.
HOUSTON, TX / ACCESSWIRE / July 20, 2022 / Via Renewables, Inc. (“Via Renewables” or the “Company”) (NASDAQ:VIA;VIASP), an independent retail energy services company, announced today that its Board of Directors has declared a quarterly cash dividend for the second quarter of 2022 in the amount of $0.18125 per share on its Class A Common Stock. This amount represents an annualized dividend of $0.725 per share. The second quarter dividend will be paid on September 15, 2022 to holders of record of Via Renewables’ Class A Common Stock on September 1, 2022.
Additionally, 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 $0.568125 per share on the Series A Preferred Stock. The dividend will be paid on October 17, 2022 to holders of record of Via Renewables’ Series A Preferred Stock on October 3, 2022. The floating rate period for the Series A Preferred Stock began on April 15, 2022.
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 19 states and serves 101 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.
HOUSTON, TX / ACCESSWIRE / July 19, 2022 / 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 2022 financial results in a conference call and webcast on Thursday, August 4, 2022 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 19 states and serves 101 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.
HOUSTON, July 5, 2022 (ACCESSWIRE) – Via Renewables, Inc. (“Via Renewables” or the “Company”) (NASDAQ: VIA, VIASP), an independent retail energy services company, announced today the closing of a new three-year $195.0 million senior secured borrowing base credit facility (the “Senior Credit Facility”) to replace its existing senior secured credit facility.
The Senior Credit Facility, which includes a $55 million accordion, replaces the Company’s current $227.5 million credit facility, which was set to mature October 2023. The Senior Credit Facility provides for working capital loans, acquisition loans, swingline loans and letters of credit.
Woodforest National Bank is the Administrative Agent, and acted as the Sole Bookrunner and Syndication Agent. Woodforest National Bank and BOKF, NA (d/b/a Bank of Texas) acted as Joint Lead Arrangers.
“The successful closing of this facility demonstrates our continued proactive approach to managing our balance sheet. This agreement positions us to execute on our strategic initiatives, invest in our growth opportunities, and continue our disciplined pursuit of acquisitions that can accelerate our growth,” said Keith Maxwell, Via Renewables’ President and Chief Executive Officer. “We want to thank our lenders for their continued commitment to Via Renewables’ success.”
“We appreciate Woodforest National Bank and Bank of Texas’s leadership in helping us to close this new credit facility,” said Mike Barajas, Via Renewables’ Chief Financial Officer. “Via Renewables’ new facility allows for increased operating flexibility through less restrictive financial covenants and provides us with a very competitive, long-term capital structure to generate value for our shareholders in 2022 and beyond.”
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 19 states and serves 101 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.
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 expected impacts and benefits of the Senior Credit Facility, business strategy, prospects for growth and acquisitions, future operations, financial position, prospects, plans, objectives, beliefs of management, availability and terms of capital, 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:
evolving risks, uncertainties and impacts relating to COVID-19, including the geographic spread, the severity of the disease, the scope and duration of the COVID-19 outbreak, actions that may be taken by governmental authorities to contain the COVID-19 outbreak or to treat its impact, and the potential for continuing negative impacts of COVID-19 on economies and financial markets;
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 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 in our debt agreements and collateral requirements;
credit risk with respect to suppliers and customers;
changes in costs to acquire customers as well as actual attrition rates;
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, 2021, 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.
