Press Releases – Page 6 – Via Renewables

Via Renewables, Inc. Reports Fourth Quarter and Full Year 2021 Financial Results

Posted on March 2, 2022April 14, 2022 by Stephen Rabalais

HOUSTON, TX / ACCESSWIRE / March 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 year ended December 31, 2021.

Key Business Highlights

Recorded $11.6 million in Adjusted EBITDA, $25.2 million in Retail Gross Margin, and $(35.8) million in Net Income for the fourth quarter 2021
Recorded $80.7 million in Adjusted EBITDA, $132.5 million in Retail Gross Margin, and $(4.0) million in Net Income for the year ended 2021
Average monthly attrition of 3.3%
Total liquidity of $122.2 million

“2021 was a stand out year for Via Renewables. We successfully rebranded to show our commitment to provide green energy to our customers. We persevered through winter storm Uri, which resulted in power and ancillary costs reaching maximum allowed clearing prices coupled with increased demand, the result of which resulted in a significant loss reflected in the first quarter. In spite of this loss we were able to remain liquid and secured customer book acquisitions for approximately 107k RCEs to bolster our customer book. We named two new c-suite executives with decades of combined retail experience to lead our team and carry out our sustainability goals. We believe Via Renewables has laid the ground work to be successful in 2022,” said Keith Maxwell, Via’s Chief Executive Officer and Chairman of the Board.

Looking forward to 2022, our plan is to grow organically by ramping up our door-to-door and telemarketing channels now that COVID restrictions are winding down. We will be expanding our product offerings starting with a new surge protection product, which has launched in Texas. We look to complement our organic sales channels with customer book acquisitions as opportunities present themselves. Via Renewables has committed to having a 100% green book and will continue to purchase Renewable Energy Credits to offset all our electric and natural gas load.

Summary Fourth Quarter 2021 Financial Results

Net income (loss) for the quarter ended December 31, 2021, was $(35.8) million, heavily impacted by record commodity prices offset by a reduction in G&A expenses. This compares to net income of $8.8 million for the quarter ended December 31, 2020.

For the quarter ended December 31, 2021, Via Renewables reported Adjusted EBITDA of $11.6 million compared to Adjusted EBITDA of $24.7 million for the quarter ended December 31, 2020. The decrease in Adjusted EBITDA was due to lower gross margin quarter over quarter, partially offset by decreases in G&A expenses.

For the quarter ended December 31, 2021, Via Renewables reported Retail Gross Margin of $25.2 million compared to Retail Gross Margin of $49.0 million for the quarter ended December 31, 2020. This decrease is attributable to fewer customers in our overall portfolio throughout the year and margin compression caused by high commodity prices.

Summary Full Year 2021 Financial Results

Net income (loss) for the year ended December 31, 2021, was $(4.0) million compared to net income of $68.2 million for the year ended December 31, 2020. The decrease compared to the prior year was primarily the result of a $64.4 million loss due to winter storm Uri. In addition, we had a mark-to-market gain this year of $5.5 million, compared to a mark-to-market gain of $14.3 million a year ago.

For the year ended December 31, 2021, Via Renewables reported Adjusted EBITDA of $80.7 million compared to Adjusted EBITDA of $106.6 million for the year ended December 31, 2020. The decrease was primarily due to decreases in both power and gas usage partially offset by higher gas margins. The decrease was also offset by G&A reductions pertaining to bad debt, legal settlement expenses and lower customer acquisitions costs.

For the year ended December 31, 2021, Via Renewables reported Retail Gross Margin of $132.5 million compared to Retail Gross Margin of $196.5 million for the year ended December 31, 2020. The decrease was primarily attributable to a smaller customer book, particularly due to restrictions on our organic sales channels, limiting our ability to ramp up sales. The shift in the customer mix towards more residential contracts not only reduces the risk in the portfolio, but also has a positive impact on our G&A and balance sheet.

Liquidity and Capital Resources

($ in thousands)	December 31, 2021
Cash and cash equivalents	$	68,899
Senior Credit Facility Availability ⁽¹⁾		28,266
Subordinated Debt Facility Availability ⁽²⁾		25,000
Total Liquidity	$	122,165

(1) Reflects amount of Letters of Credit that could be issued based on existing covenants as of December 31, 2021.

(2) The availability of Subordinated Facility is dependent on our Founder’s willingness and ability to lend.

Dividend

Via Renewables’ Board of Directors declared quarterly dividends of $0.18125 per share of Class A common stock payable on March 15, 2022 to holders of record as of March 1, 2022, and $0.546875 per share of Series A Preferred Stock payable on April 15, 2022 to holders of record as of April 1, 2022.

Conference Call and Webcast

Via Renewables will host a conference call to discuss fourth quarter and full year 2021 results on Thursday, March 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 & Presentations page of the Via Renewables 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 101 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.

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 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 cash dividends, 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 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 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:
Mike Barajas,
832-200-3727

Media Relations:
Kira Jordan,
832-255-7302

VIA RENEWABLES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2021 AND DECEMBER 31, 2020
(in thousands, except share counts)

	December 31, 2021			December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	68,899		$	71,684
Restricted cash		6,421			–
Accounts receivable, net of allowance for doubtful accounts of $2,368 and $3,942 as of December 31, 2021 and 2020, respectively		66,676			70,350
Accounts receivable-affiliates		3,819			5,053
Inventory		1,982			1,496
Fair value of derivative assets		3,930			311
Customer acquisition costs, net		946			5,764
Customer relationships, net		8,523			12,077
Deposits		6,664			5,655
Renewable energy credit asset		14,691			20,666
Other current assets		14,129			11,818
Total current assets		196,680			204,874
Property and equipment, net		4,261			3,354
Fair value of derivative assets		340			–
Customer acquisition costs, net		453			306
Customer relationships, net		5,660			5,691
Deferred tax assets		23,915			27,960
Goodwill		120,343			120,343
Other assets		3,624			4,139
Total Assets	$	355,276		$	366,667
Liabilities, Series A Preferred Stock and Stockholders’ Equity
Current liabilities:
Accounts payable	$	43,285		$	27,322
Accounts payable-affiliates		491			826
Accrued liabilities		19,303			34,164
Renewable energy credit liability		13,548			19,549
Fair value of derivative liabilities		4,158			7,505
Other current liabilities		1,707			1,295
Total current liabilities		82,492			90,661
Long-term liabilities:
Fair value of derivative liabilities		36			227
Long-term portion of Senior Credit Facility		135,000			100,000
Other long-term liabilities		109			30
Total liabilities		217,637			190,918
Commitments and contingencies
Series A Preferred Stock, par value $0.01 per share, 20,000,000 shares authorized, 3,567,543 shares issued and outstanding at December 31, 2021 and 3,707,256 shares issued and 3,567,543 outstanding at December 31, 2020		87,288			87,288
Stockholders’ equity:
Common Stock :
Class A common stock, par value $0.01 per share, 120,000,000 shares authorized, 15,791,019 shares issued and 15,646,425 shares outstanding at December 31, 2021 and 14,771,878 shares issued and 14,627,284 shares outstanding at December 31, 2020		158			148
Class B common stock, par value $0.01 per share, 60,000,000 shares authorized, 20,000,000 issued and outstanding at December 31, 2021 and 20,800,000 issued and outstanding at December 31, 2020		201			209
Additional paid-in capital		54,663			55,222
Accumulated other comprehensive loss		(40	)		(40	)
Retained earnings		776			11,721
Treasury stock, at cost, 144,594 at December 31, 2021 and December 31, 2020		(2,406	)		(2,406	)
Total stockholders’ equity		53,352			64,854
Non-controlling interest in Spark HoldCo, LLC		(3,001	)		23,607
Total equity		50,351			88,461
Total Liabilities, Series A Preferred Stock and stockholders’ equity	$	355,276		$	366,667

VIA RENEWABLES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) FOR THE YEARS ENDED DECEMBER 31, 2021, 2020 and 2019
(in thousands, except per share data)

	Year Ended December 31,
	2021			2020			2019
Revenues:
Retail revenues	$	397,728		$	555,547		$	810,954
Net asset optimization (expense) revenues		(4,243	)		(657	)		2,771
Total revenues		393,485			554,890			813,725
Operating expenses:
Retail cost of revenues		323,219			344,592			615,225
General and administrative		44,279			90,734			133,534
Depreciation and amortization		21,578			30,767			40,987
Total operating expenses		389,076			466,093			789,746
Operating income		4,409			88,797			23,979
Other (expense)/income:
Interest expense		(4,926	)		(5,266	)		(8,621	)
Interest and other income		370			423			1,250
Gain on disposal of eRex		–			–			4,862
Total other (expense)/income		(4,556	)		(4,843	)		(2,509	)
(Loss) income before income tax expense		(147	)		83,954			21,470
Income tax expense		3,804			15,736			7,257
Net (loss) income	$	(3,951	)	$	68,218		$	14,213
Less: Net (loss) income attributable to non-controlling interest		(9,146	)		38,928			5,763
Net income attributable to Via Renewables, Inc. stockholders	$	5,195		$	29,290		$	8,450
Less: Dividend on Series A preferred stock		7,804			7,441			8,091
Net (loss) income attributable to stockholders of Class A common stock	$	(2,609	)	$	21,849		$	359
Other comprehensive (loss) income, net of tax:
Currency translation (loss) gain	$	–		$	–		$	(102	)
Other comprehensive (loss) income		–			–			(102	)
Comprehensive income (loss)	$	(3,951	)	$	68,218		$	14,111
Less: Comprehensive (loss) income attributable to non-controlling interest		(9,146	)		38,928			5,703
Comprehensive income attributable to Via Renewables, Inc. stockholders	$	5,195		$	29,290		$	8,408

Net (loss) income attributable to Via Renewables, Inc. per share of Class A common stock
Basic	$	(0.17	)	$	1.50		$	0.03
Diluted	$	(0.17	)	$	1.48		$	0.02

Weighted average shares of Class A common stock outstanding
Basic		15,128			14,555			14,286
Diluted		15,128			14,715			14,568

VIA RENEWABLES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2021 , 2020 AND 2019
(in thousands)

	Year Ended December 31,
	2021			2020			2019
Cash flows from operating activities:
Net (loss) income	$	(3,951	)	$	68,218		$	14,213
Adjustments to reconcile net (loss) income to net cash flows provided by operating activities:
Depreciation and amortization expense		21,578			30,767			41,002
Deferred income taxes		4,045			1,905			(6,929	)
Stock based compensation		3,448			2,503			5,487
Amortization of deferred financing costs		997			1,210			1,275
Change in fair value of earnout liabilities		–			–			(1,328	)
Excess tax expense (benefit) related to restricted stock vesting		–			–			50
Bad debt expense		445			4,692			13,532
Loss on derivatives, net		(21,200	)		23,386			67,749
Current period cash settlements on derivatives, net		15,692			(37,414	)		(41,919	)
Gain on disposal of eRex		–			–			(4,862	)
Other		–			–			(776	)
Changes in assets and liabilities:
Decrease in accounts receivable		3,229			37,960			23,699
Decrease (increase) in accounts receivable-affiliates		1,234			(3,020	)		526
(Increase) decrease in inventory		(486	)		1,458			924
Increase in customer acquisition costs		(1,415	)		(1,513	)		(18,685	)
Decrease (increase) in prepaid and other current assets		654			(2,120	)		9,250
Decrease in intangible assets-customer acquisition		27			–			–
(Increase) decrease in other assets		(190	)		288			55
Decrease in accounts payable and accrued liabilities		(10,213	)		(37,297	)		(8,620	)
Decrease in accounts payable-affiliates		(335	)		(184	)		(1,455	)
(Decrease) increase in other current liabilities		(705	)		1,180			(1,459	)
(Decrease) increase in other non-current liabilities		(152	)		(188	)		6
Net cash provided by operating activities		12,702			91,831			91,735
Cash flows from investing activities:
Purchases of property and equipment		(2,713	)		(2,154	)		(1,120	)
Acquisition of Customers		(3,797	)		–			(5,913	)
Disposal of eRex investment		–			–			8,431
Net cash (used in) provided by investing activities		(6,510	)		(2,154	)		1,398
Cash flows from financing activities:
Buyback of Series A Preferred Stock		–			(2,282	)		(743	)
Payment to affiliates for acquisition of customer book		–			–			(10	)
Borrowings on notes payable		774,000			612,000			356,000
Payments on notes payable		(739,000	)		(635,000	)		(362,500	)
Net paydown on subordinated debt facility		–			–			(10,000	)
Payments on the Verde promissory note		–			–			(2,036	)
Payment for acquired customers		–			(972	)		–
Restricted stock vesting		(1,329	)		(1,107	)		(1,348	)
Proceeds from disgorgement of stockholders short-swing profits		–			–			55
Payment of Tax Receivable Agreement Liability		–			–			(11,239	)
Payment of dividends to Class A common stockholders		(10,987	)		(10,569	)		(10,382	)
Payment of distributions to non-controlling unitholders		(17,436	)		(29,450	)		(34,794	)
Payment of Preferred Stock dividends		(7,804	)		(7,886	)		(8,106	)
Purchase of Treasury Stock		–			(395	)		–
Net cash used in financing activities		(2,556	)		(75,661	)		(85,103	)
Increase in Cash and cash equivalents and Restricted Cash		3,636			14,016			8,030
Cash and cash equivalents and Restricted cash-beginning of period		71,684			57,668			49,638
Cash and cash equivalents and Restricted cash-end of period	$	75,320		$	71,684		$	57,668
Supplemental Disclosure of Cash Flow Information:
Non-cash items:
Property and equipment purchase accrual	$	(38	)	$	46		$	92
Holdback for Verde Note – Indemnified Matters	$	–		$	–		$	4,900
Write-off of tax benefit related to tax receivable agreement liability – affiliates	$	–		$	–		$	4,384
Gain on settlement of tax receivable agreement liability – affiliates	$	–		$	–		$	16,336
Cash paid (received) during the period for:
Interest	$	3,754		$	3,859		$	6,634
Taxes	$	(1,788	)	$	23,890		$	7,516

VIA RENEWABLES, INC.
OPERATING SEGMENT RESULTS
FOR THE YEARS ENDED December 31, 2021, 2020 and 2019
(in thousands, except per unit operating data)
(unaudited)

	Year Ended December 31,
	2021			2020		2019
	(in thousands, except volume and per unit operating data)
Retail Electricity Segment
Total Revenues	$	322,594		$	461,393	$	688,451
Retail Cost of Revenues		284,794			306,012		552,250
Less: Net Gains (Losses) on non-trading derivatives, net of cash settlements		6,194			12,148		(24,339	)
Non-recurring event – Winter Storm Uri	$	(64,403	)	$	–	$	–
Retail Gross Margin ⁽¹⁾-Electricity	$	96,009		$	143,233	$	160,540
Volumes-Electricity (MWhs) ⁽³⁾		2,677,681			4,049,543		6,416,568
Retail Gross Margin ^{(2) (4)}-Electricity per MWh	$	35.86		$	35.37	$	25.02

Retail Natural Gas Segment
Total Revenues	$	75,134		$	94,154	$	122,503
Retail Cost of Revenues		38,425			38,580		62,975
Less: Net Gains (Losses) on non-trading derivatives, net of cash settlements		184			2,334		(672	)
Retail Gross Margin ⁽¹⁾ -Gas	$	36,525		$	53,240	$	60,200
Volumes-Gas (MMBtus)		8,611,285			11,100,446		14,543,563
Retail Gross Margin ⁽²⁾ -Gas per MMBtu	$	4.24		$	4.80	$	4.14

(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 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 year ended December 31, 2021.

(4) Retail Gross Margin – Electricity per MWh excludes Winter Storm Uri impact.

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 gain (loss) 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. 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, as described above. 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.

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. 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. We will present any credits received related to the storm exceeding $4.9 million as a reduction of the related $60.0 million non-recurring add back to Adjusted EBITDA for consistent presentation. There are no assurances credits will be received.

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 or historical cost basis;
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

Retail Gross Margin

We define Retail Gross Margin as operating income (loss) plus (i) depreciation and amortization expenses and (ii) general and administrative expenses, less (i) net asset optimization revenues, (ii) net gains (losses) on non-trading derivative instruments, and (iii) net current period cash settlements on non-trading derivative instruments. 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 business by removing the impacts of our asset optimization activities and net non-cash income (loss) impact of our economic hedging activities. As an indicator of our retail energy business’ operating performance, Retail Gross Margin should not be considered an alternative to, or more meaningful than, operating income (loss), 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. We received credits totaling $0.5 million related to Winter Storm Uri costs in the third quarter of 2021, which is included in the calculation of Retail Gross Margin for consistent presentation.

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 operating income (loss). 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 operating income (loss). Adjusted EBITDA and Retail Gross Margin are not presentations made in accordance with GAAP and have important 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) and net cash provided by operating activities, 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 by operating activities for each of the periods indicated.

APPENDIX TABLES A-1 AND A-2
ADJUSTED EBITDA RECONCILIATIONS
(in thousands)
(unaudited)

	Year Ended December 31,						Quarter Ended December 31,
(in thousands)	2021			2020			2021			2020
Reconciliation of Adjusted EBITDA to Net Income (Loss):
Net (loss) income	$	(3,951	)	$	68,218		$	(35,844	)	$	8,767
Depreciation and amortization		21,578			30,767			5,080			6,683
Interest expense		4,926			5,266			765			1,033
Income tax expense		3,804			15,736			(5,356	)		2,997
EBITDA		26,357			119,987			(35,355	)		19,480
Less:
Net, (gain) loss on derivative instruments		21,200			(23,386	)		(36,526	)		(9,371	)
Net, cash settlements on derivative instruments		(15,692	)		37,729			(9,642	)		4,732
Customer acquisition costs		1,415			1,513			650			(249	)
Plus:
Non-cash compensation expense		3,448			2,503			1,436			369
Non-recurring event – Winter Storm Uri		60,000			–			–			–
Non-recurring legal and regulatory settlements		(2,225	)		–			–			–
Adjusted EBITDA	$	80,657		$	106,634		$	11,599		$	24,737

	Year Ended December 31,						Quarter Ended December 31,
(in thousands)	2021			2020			2021			2020
Reconciliation of Adjusted EBITDA to net cash provided by operating activities:
Net cash provided by operating activities	$	12,702		$	91,831		$	(6,070	)	$	7,883
Amortization of deferred financing costs		(997	)		(1,210	)		(205	)		(244	)
Bad debt expense		(445	)		(4,692	)		(66	)		(79	)
Interest expense		4,926			5,266			765			1,033
Income tax expense		3,804			15,736			(5,356	)		2,997
Non-recurring event – Winter Storm Uri		60,000			–			–			–
Non-recurring legal settlement		(2,225	)		–			–			–
Changes in operating working capital
Accounts receivable, prepaids, current assets		(5,117	)		(32,820	)		20,188			15,481
Inventory		486			(1,458	)		(562	)		(300	)
Accounts payable, accrued liabilities, current liabilities		11,253			36,301			(4,556	)		(2,912	)
Other		(3,730	)		(2,320	)		7,461			878
Adjusted EBITDA	$	80,657		$	106,634		$	11,599		$	24,737
Cash Flow Data:
Cash flows provided by operating activities	$	12,702		$	91,831		$	(6,070	)	$	7,883
Cash flows (used in) provided by investing activities	$	(6,510	)	$	(2,154	)	$	(2,821	)	$	(935	)
Cash flows used in financing activities	$	(2,556	)	$	(75,661	)	$	(13,908	)	$	(10,644	)

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

APPENDIX TABLE A-3
RETAIL GROSS MARGIN RECONCILIATION
(in thousands)
(unaudited)

	Year Ended December 31,						Quarter Ended December 31,
(in thousands)	2021			2020			2021			2020
Reconciliation of Retail Gross Margin to Operating Income:
Operating income	$	4,409		$	88,797		$	(40,577	)	$	12,667
Plus:
Depreciation and amortization		21,578			30,767			5,080			6,683
General and administrative expense		44,279			90,734			11,226			24,647
Less:
Net asset optimization (expense) revenue		(4,243	)		(657	)		(3,701	)		(338	)
Gain (Loss) on non-trading derivative instruments		22,130			(23,439	)		(36,084	)		(9,420	)
Cash settlements on non-trading derivative instruments		(15,752	)		37,921			(9,698	)		4,768
Non-recurring event – Winter Storm Uri	$	(64,403	)	$	–		$	–		$	–
Retail Gross Margin	$	132,534		$	196,473		$	25,212		$	48,987
Retail Gross Margin – Retail Electricity Segment ⁽¹⁾	$	96,009		$	143,233		$	15,531		$	34,092
Retail Gross Margin – Retail Natural Gas Segment	$	36,525		$	53,240		$	9,681		$	14,895

Retail Gross Margin for the year ended December 31, 2021 includes a $0.5 million reduction related to the Winter Storm Uri credit settlements received and includes a $64.4 million add back related to Winter Storm Uri.

Via Renewables, Inc. to Present Full Year and Fourth Quarter 2021 Financial Results on Thursday, March 3, 2022

Posted on February 10, 2022February 11, 2022 by Kira Jordan

HOUSTON, TX / ACCESSWIRE / February 10, 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 full year and fourth quarter 2021 financial results in a conference call and webcast on Thursday, March 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 100 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.

Contact: Via Renewables, Inc.

Investors:

Mike Barajas, 832-200-3727

Media:

Kira Jordan, 832-255-7302

SOURCE: Via Renewables, Inc.

View source version on accesswire.com:
https://www.accesswire.com/688329/Via-Renewables-Inc-to-Present-Full-Year-and-Fourth-Quarter-2021-Financial-Results-on-Thursday-March-3-2022

Via Renewables, Inc. Announces Dividend on Common and Preferred Stock

Posted on January 20, 2022February 11, 2022 by Kira Jordan

HOUSTON, TX / ACCESSWIRE / January 20, 2022 / Via Renewables, Inc. (“Via Renewables” or the “Company”) (NASDAQ:VIA), an independent retail energy services company, announced today that its Board of Directors has declared a quarterly cash dividend for the fourth quarter of 2021 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, 2022 to holders of record of Spark’s Class A Common Stock on March 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 $0.546875 per share on the Series A Preferred Stock. This amount represents an annualized dividend of $2.1875 per share. The dividend will be paid on April 15, 2022 to holders of record of Spark’s Series A Preferred Stock on April 1, 2022.

About Spark Energy, 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. Headquartered in Houston, Texas, Spark currently operates in 19 states and serves 100 utility territories. Spark 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 Spark Energy Investor Relations website at ir.sparkenergy.com. Investors are urged to monitor our website regularly for information and updates about the Company.

Contact: Via Renewables, Inc.

Investors:

Mike Barajas, 832-200-3727

Media:

Kira Jordan, 832-255-7302

SOURCE: Via Renewables, Inc.

View source version on accesswire.com:
https://www.accesswire.com/684894/Via-Renewables-Inc-Announces-Dividend-on-Common-and-Preferred-Stock

Via Renewables, Inc. Reports Third Quarter 2021 Financial Results

Posted on November 3, 2021February 11, 2022 by Kira Jordan

HOUSTON, TX / ACCESSWIRE / November 3, 2021 / Via Renewables, Inc. (“Via Renewables” or the “Company”) (NASDAQ:VIA), an independent retail energy services company, today reported financial results for the quarter ended September 30, 2021.

Key Highlights

Achieved $22.0 million in Adjusted EBITDA, and $30.9 million in Retail Gross Margin, and $34.7 million in Net Income for the third quarter
Total RCE count of 368,000 as of September 30, 2021, compared to 347,000 as of June 30, 2021
Average monthly attrition of 2.4%
Total liquidity of $134.5 million as of September 30, 2021

“On October 15, 2021, we executed the amendment and extension of our Senior Credit Facility. The Senior Credit Facility now has a maturity date of October 13, 2023 with the addition of a new Acquisition Line. The Acquisition Line will allow Via Renewables the flexibility to pursue opportunities in the marketplace as we explore options in the renewable energy space,” said Keith Maxwell, Via Renewables’ President and Chief Executive Officer.

Summary Third Quarter 2021 Financial Results

Net income for the quarter ended September 30, 2021, was $34.7 million compared to net income of $22.6 million for the quarter ended September 30, 2020. The increase compared to the prior year was primarily the result of an increase in gains on derivative instruments and a decrease in G&A and depreciation and amortization.

For the quarter ended September 30, 2021, Via Renewables reported Adjusted EBITDA of $22.0 million compared to Adjusted EBITDA of $27.7 million for the quarter ended September 30, 2020. While gross margin was lower year-over-year, the decrease in gross margin was partially offset by decreases in G&A expenses.

For the quarter ended September 30, 2021, Via Renewables reported Retail Gross Margin of $30.9 million compared to Retail Gross Margin of $47.0 million for the quarter ended September 30, 2020. This decrease of $16.1 million was primarily attributable to fewer customers in our overall portfolio.

Liquidity and Capital Resources
($ in thousands)	September 30, 2021
Cash and cash equivalents	$	89,422
Senior Credit Facility Availability ⁽¹⁾		30,121
Subordinated Debt Facility Availability ⁽²⁾		15,000
Total Liquidity	$	134,543

⁽¹⁾ Reflects amount of Letters of Credit that could be issued based on existing covenants as of September 30, 2021.
⁽²⁾ The availability of the Subordinated Facility is dependent on our Founder’s willingness and ability to lend.

Dividend

On October 20, 2021, Via Renewables’ Board of Directors declared quarterly dividends of $0.18125 per share on its Class A common stock payable on December 15, 2021 to holders of record on December 1, 2021, and $0.546875 per share on its Series A Preferred Stock payable on January 17, 2022 to holders of record on January 3, 2022.

Business Outlook

Mr. Maxwell concluded, “Customers acquired earlier this year began coming on flow in the third quarter, and can be seen by the increase in our RCE count. We will continue to see additional customers come on flow in the fourth quarter as the remaining acquired customers are onboarded. As our organic channels continue to ramp up and we explore opportunities in the marketplace, we are forecasting customer growth in the future.”

Conference Call and Webcast

Via will host a conference call to discuss third quarter 2021 results on Thursday, November 4, 2021, 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 100 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.

Cautionary Note Regarding Forward Looking Statements

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 resolution of outstanding pricing and volume settlement data from ERCOT; the results of formal disputes regarding pricing and volume settlement data received to date; 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 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, 2020, and other public filings and press releases.

For further information, please contact:

Investor Relations:
Mike Barajas,
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,
	2021			2020			2021			2020
Revenues:
Retail revenues	$	98,267		$	141,188		$	293,721		$	436,166
Net asset optimization (expense) revenue		(288	)		(558	)		(542	)		(319	)
Total Revenues		97,979			140,630			293,179			435,847
Operating Expenses:
Retail cost of revenues		40,298			85,118			198,642			269,546
General and administrative		9,719			19,080			33,053			66,087
Depreciation and amortization		5,049			7,278			16,498			24,084
Total Operating Expenses		55,066			111,476			248,193			359,717
Operating income		42,913			29,154			44,986			76,130
Other (expense)/income:
Interest expense		(1,298	)		(1,487	)		(4,161	)		(4,233	)
Interest and other income		63			80			228			293
Total other expenses		(1,235	)		(1,407	)		(3,933	)		(3,940	)
Income before income tax expense		41,678			27,747			41,053			72,190
Income tax expense		7,021			5,141			9,160			12,739
Net income	$	34,657		$	22,606		$	31,893		$	59,451
Less: Net income attributable to non-controlling interests		19,774			12,993			14,158			34,200
Net income attributable to Via Renewables, Inc. stockholders	$	14,883		$	9,613		$	17,735		$	25,251
Less: Dividend on Series A Preferred Stock		1,951			1,951			5,853			5,490
Net income attributable to stockholders of Class A common stock	$	12,932		$	7,662		$	11,882		$	19,761

Net income attributable to Via Renewables, Inc. per share of Class A common stock
Basic	$	0.83		$	0.52		$	0.79		$	1.36
Diluted	$	0.82		$	0.52		$	0.79		$	1.35

Weighted average shares of Class A common stock outstanding
Basic		15,572			14,653			14,965			14,531
Diluted		15,686			14,671			15,099			14,655

Selected Balance Sheet Data
(in thousands)	September 30, 2021		December 31, 2020
Cash and cash equivalents		89,422		71,684
Working capital		171,286		114,213
Total assets		392,482		366,667
Total debt		140,000		100,000
Total liabilities		211,450		190,918
Total stockholders’ equity		69,566		64,854

Selected Cash Flow Data
	Nine Months Ended September 30,
(in thousands)	2021			2020
Net cash provided by operating activities	$	18,772		$	83,948
Net cash used in investing activities	$	(3,689	)	$	(1,219	)
Net cash provided (used) in financing activities	$	11,352		$	(65,017	)

Operating Segment Results
(in thousands, except volume and per unit operating data)	Three Months Ended September 30,					Nine Months Ended September 30,
	2021			2020		2021			2020
Retail Electricity Segment
Total Revenues	$	92,104		$	132,958	$	242,548		$	366,981
Retail Cost of Revenues		41,035			82,061		179,762			241,712
Less: Net gain on non-trading derivatives, net of cash settlements		22,359			8,135		46,711			16,128
Non-recurring event – Winter Storm Uri		497			–		(64,403	)		–
Retail Gross Margin ⁽¹⁾ – Electricity	$	28,213		$	42,762	$	80,478		$	109,141
Volumes – Electricity (MWhs) ⁽³⁾		777,340			1,165,500		2,013,468			3,235,222
Retail Gross Margin ^{(2) (4)}– Electricity per MWh	$	36.29		$	36.69	$	39.97		$	33.74

Retail Natural Gas Segment
Total Revenues	$	6,163		$	8,230	$	51,173		$	69,185
Retail Cost of Revenues		(737	)		3,057		18,880			27,834
Less: Net gain on non-trading derivatives, net of cash settlements		4,243			904		5,449			3,006
Retail Gross Margin ⁽¹⁾ – Gas	$	2,657		$	4,269	$	26,844		$	38,345
Volumes – Gas (MMBtus)		668,063			949,088		5,765,588			8,198,827
Retail Gross Margin ⁽²⁾– Gas per MMBtu	$	3.98		$	4.50	$	4.66		$	3.93

⁽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” section below for a reconciliation of Adjusted EBITDA and Retail Gross Margin to their 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

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, as described above. 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.

Our lenders under the Company’s Senior Credit Facility allowed $60.0 million of the $64.9 million pre-tax storm loss to be added back as a non-recurring item in the calculation of Adjusted EBITDA for the Company’s Debt Covenant Calculations. 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 the Company’s financial condition and/or liquidity. We will present any credits received related to the storm exceeding $4.9 million as a reduction of Adjusted EBITDA for consistent presentation. There are no assurances credits will be received.

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.

Retail Gross Margin

We define retail gross margin as operating income (loss) plus (i) depreciation and amortization expenses and (ii) general and administrative expenses, less (iii) net asset optimization revenues (expenses), (iv) net gains (losses) on non-trading derivative instruments, (v) net current period cash settlements on non-trading derivative instruments and (vi) 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 an indicator of our retail energy business’s operating performance, retail gross margin should not be considered an alternative to, or more meaningful than, operating income (loss), 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 current quarter we have made the decision to add back the financial loss related to winter storm Uri, as described above, in the calculation of Retail Gross Margin because the extremity of the storm combined with the impact of the scarcity pricing mechanisms ordered by ERCOT is considered unusual, infrequent, and non-recurring in nature.

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 operating income (loss). 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 operating income (loss). 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 operating income (loss), 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.

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:
	Three Months Ended September 30,					Nine Months Ended September 30,
(in thousands)	2021			2020		2021			2020
Net income	$	34,657		$	22,606	$	31,893		$	59,451
Depreciation and amortization		5,049			7,278		16,498			24,084
Interest expense		1,298			1,487		4,161			4,233
Income tax expense		7,021			5,141		9,160			12,739
EBITDA		48,025			36,512		61,712			100,507
Less:
Net, gain (loss) on derivative instruments		31,798			2,451		57,726			(14,015	)
Net cash settlements on derivative instruments		(5,660	)		6,425		(6,050	)		32,997
Customer acquisition costs		309			207		765			1,762
Plus:
Non-cash compensation expense		441			320		2,012			2,134
Non-recurring event – Winter Storm Uri		–			–		60,000			–
Non-recurring legal settlement		–			–		(2,225	)		–
Adjusted EBITDA	$	22,019		$	27,749	$	69,058		$	81,897

Reconciliation of Adjusted EBITDA to net cash provided in operating activities:
	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2021			2020			2021			2020
Net cash provided by operating activities	$	9,604		$	12,165		$	18,772		$	83,948
Amortization of deferred financing costs		(275	)		(476	)		(792	)		(966	)
Bad debt expense		(492	)		(880	)		(379	)		(4,613	)
Interest expense		1,298			1,487			4,161			4,233
Income tax expense		7,021			5,141			9,160			12,739
Non-recurring event – Winter Storm Uri		–			–			60,000			–
Non-recurring legal settlement		–			–			(2,225	)		–
Changes in operating working capital
Accounts receivable, prepaids, current assets		6,456			1,709			(25,305	)		(48,301	)
Inventory		1,448			823			1,048			(1,158	)
Accounts payable and accrued liabilities		2,952			9,374			15,809			39,213
Other		(5,993	)		(1,594	)		(11,191	)		(3,198	)
Adjusted EBITDA	$	22,019		$	27,749		$	69,058		$	81,897
Cash Flow Data:
Net cash provided by operating activities	$	9,604		$	12,165		$	18,772		$	83,948
Cash flows used in investing activities	$	(2,626	)	$	(640	)	$	(3,689	)	$	(1,219	)
Net cash (used in) provided by financing activities	$	(13,399	)	$	(15,769	)	$	11,352		$	(65,017	)

The following table presents a reconciliation of Retail Gross Margin to operating income (loss) for each of the periods indicated.

Reconciliation of Retail Gross Margin to Operating income:
	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2021			2020			2021			2020
Operating income	$	42,913		$	29,154		$	44,986		$	76,130
Plus:
Depreciation and amortization		5,049			7,278			16,498			24,084
General and administrative expense		9,719			19,080			33,053			66,087
Less:
Net asset optimization (expense) revenue		(288	)		(558	)		(542	)		(319	)
Gain (loss) on non-trading derivative instruments		32,262			2,550			58,214			(14,019	)
Cash settlements on non-trading derivative instruments		(5,660	)		6,489			(6,054	)		33,153
Non-recurring event – Winter Storm Uri		497			–			(64,403	)		–
Retail Gross Margin	$	30,870		$	47,031		$	107,322		$	147,486
Retail Gross Margin – Retail Electricity Segment ⁽¹⁾	$	28,213		$	42,762		$	80,478		$	109,141
Retail Gross Margin – Retail Natural Gas Segment	$	2,657		$	4,269		$	26,844		$	38,345

⁽¹⁾Retail Gross Margin for the three months ended September 30, 2021 includes a $0.5 million reduction related to the Winter Storm Uri credit settlement received and nine months ended September 30, 2021 includes a $64.4 million add back related to Winter Storm Uri.

Via Renewables, Inc. to Present Third Quarter 2021 Financial Results on Thursday, November 4, 2021

Posted on October 22, 2021October 25, 2021 by Kira Jordan

HOUSTON, TX / ACCESSWIRE / October 22, 2021 / 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 2021 financial results in a conference call and webcast on Thursday, November 4, 2021 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 19 states and serves 100 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.

Contact: Via Renewables, Inc.

Investors:

Mike Barajas, 832-200-3727

Media:

Kira Jordan, 832-255-7302

Via Renewables, Inc. Announces Dividend on Common and Preferred Stock; Amendment and Extension of Credit Facilities

Posted on October 20, 2021October 22, 2021 by Kira Jordan

HOUSTON, October 20, 2021 (ACCESSWIRE) – Via Renewables, Inc. (“Via Renewables” or the “Company”) (NASDAQ: VIA), an independent retail energy services company, announced today that its Board of Directors has declared a quarterly cash dividend for the third quarter of 2021 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, 2021 to holders of record of Via Renewables’ Class A Common Stock on December 1, 2021.

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 $0.546875 per share on the Series A Preferred Stock. This amount represents an annualized dividend of $2.1875 per share. The dividend will be paid on January 17, 2022 to holders of record of Via Renewables’ Series A Preferred Stock on January 3, 2022.

Via Renewables also announced an amendment and extension (the “Amendment”) of its senior secured credit facility (the “Facility”) and an extension of its $25 million subordinated debt facility with its majority shareholder. The Facility, which was set to mature on July 31, 2022, now has a maturity date of October 13, 2023. The subordinated facility, which was set to mature on January 31, 2023, now has a maturity date of January 31, 2025.

“These facilities are pivotal for Via Renewables as the company explores new opportunities in sustainable energy solutions,” said Keith Maxwell, Via Renewables’ President and Chief Executive Officer. “We are excited about the new Acquisition Line in our senior credit facility which will be key for exploring new solutions. The Company is well positioned with ample liquidity to continue to streamline the business and pursue opportunities in the marketplace. We thank each of our lenders for renewing their commitments and continuing their support of our business.”

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 100 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.

Contact: Via Renewables, Inc.

Investors:

Mike Barajas, 832-200-3727

Media:

Kira Jordan, 832-255-7302

Spark Energy, Inc. Announces New Strategic Initiatives as Via Renewables

Posted on August 9, 2021September 17, 2021 by mkeenan

HOUSTON, TX / ACCESSWIRE / August 9, 2021 / Spark Energy, Inc. (“Spark” or the “Company”) (NASDAQ:SPKE), an independent retail energy services company, is proud to announce that its shareholders overwhelmingly approved a proposal by the Company’s Board of Directors to change the name of the Company to Via Renewables, Inc. (NASDAQ:VIA). As part of this initiative, the Company has launched a new Investor Relations website at www.ViaRenewables.com, which details the change, as well as Via Renewable’s plans for future sustainability strategies.

“We are very optimistic about the additional opportunities presented by the new Via Renewables platform,” said Keith Maxwell, Chairman and Chief Executive Officer. “Our leadership team and I are excited about pursuing opportunities to provide innovative solutions to a broader, eco-minded customer base and further diversify our offerings, while vertically integrating and streamlining our organization. We believe the Via Renewables name best represents this direction, along with the value that we plan to deliver now and in the future.”

The ticker symbols and CUSIP numbers for the Company’s Class A common stock and 8.75% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock (the “Preferred Stock”) will change. At the beginning of trading on August 10, 2021, the Company’s Class A common stock is expected to begin trading on the NASDAQ Global Select Market under the ticker “VIA” and the CUSIP number will change to 92556D 106, and the Company’s Preferred Stock is expected to begin trading on the NASDAQ Global Select Market under the ticker “VIASP” and the CUSIP number will change to 92556D 205.

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 100 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.

Contact: Via Renewables, Inc.

Investors:

Mike Barajas, 832-200-3727

Media:

Kira Jordan, 832-255-7302

SOURCE: Spark Energy, Inc.

View source version on accesswire.com:
https://www.accesswire.com/658952/Spark-Energy-Inc-Announces-New-Strategic-Initiatives-as-Via-Renewables

Spark Energy, Inc. Reports Second Quarter 2021 Financial Results

Posted on August 4, 2021September 14, 2021 by mkeenan

HOUSTON, TX / ACCESSWIRE / August 4, 2021 / Spark Energy, Inc. (“Spark” or the “Company”) (NASDAQ:SPKE)(FSE:SLE), an independent retail energy services company, today reported financial results for the quarter ended June 30, 2021.

Key Highlights

Achieved $14.4 million in Adjusted EBITDA, and $26.4 million in Retail Gross Margin, and $24.8 million in Net Income for the second quarter
Total RCE count of 347,000 as of June 30, 2021
Entered into four separate agreements to acquire approximately 56,900 RCEs
Average monthly attrition of 3.3%
Total liquidity of $151.8 million as of June 30, 2021

“We are proud to announce that on May 25th, 2021, we entered into four agreements to acquire a total of approximately 56,900 RCEs. These customers are expected to be immediately accretive to Adjusted EBITDA. Subsequent to quarter end, Spark entered into an agreement that will bring an additional ~50,000 RCEs in the third quarter. We have completed high grading our existing customer contracts and are pivoting back to growth through both acquisitions and organic sales. Additionally, we plan to leverage our customer book and operational expertise to vertically integrate our supply chain with multiple sustainable energy generation projects. While continuing to focus on growing the existing business, we believe there are numerous complimentary avenues in the green energy space that can supplement our history of strong earnings,” said Keith Maxwell, Spark’s President and Chief Executive Officer.

Summary Second Quarter 2021 Financial Results
Net income for the quarter ended June 30, 2021, was $24.8 million compared to net income of $26.8 million for the quarter ended June 30, 2020. The decrease compared to the prior year was primarily the result of lower margin driven by lower customer counts partially offset by a decrease in G&A and depreciation and amortization.

For the quarter ended June 30, 2021, Spark reported Adjusted EBITDA of $14.4 million compared to Adjusted EBITDA of $23.8 million for the quarter ended June 30, 2020. While gross margin was lower year-over-year, the decrease in gross margin was partially offset by decreases in G&A expenses and Customer Acquisition Cost spending.

For the quarter ended June 30, 2021, Spark reported Retail Gross Margin of $26.4 million compared to Retail Gross Margin of $45.0 million for the quarter ended June 30, 2020. This decrease of $18.6 million was primarily attributable to fewer customers in our overall portfolio.


Liquidity and Capital Resources
($ in thousands)	June 30, 2021
Cash and cash equivalents	$	93,035
Senior Credit Facility Availability ⁽¹⁾		43,739
Subordinated Debt Facility Availability ⁽²⁾		15,000
Total Liquidity	$	151,774

⁽¹⁾ Reflects amount of Letters of Credit that could be issued based on existing covenants as of June 30, 2021.
⁽²⁾ The availability of the Subordinated Facility is dependent on our Founder’s willingness and ability to lend.

Dividend
On July 21, 2021, Spark’s Board of Directors declared quarterly dividends of $0.18125 per share of Class A common stock payable on September 15, 2021 to holders of record on September 1, 2021, and $0.546875 per share of Series A Preferred Stock payable on October 15, 2021 to holders of record on October 1, 2021.

Business Outlook
Mr. Maxwell concluded, “Spark Energy will be holding a special shareholder meeting on Friday, August 6th, to propose to change the name of the public entity to VIA Renewables. We want to take this opportunity to rebrand ourselves and be a meaningful part of the global push towards energy sustainability, efficiency, and longevity. As our first step down this path, we purchased Renewable Energy Credits to offset all of our electric and natural gas load in the second quarter of 2021 and will continue to do that on a go-forward basis. This is just the beginning as we plan on exploring all options including wind, hydro, and solar generation, along with other special projects in the renewable space. The Company’s goals going forward are easily summarized; 1. Make the world a more environmentally sustainable place and; 2. Increase our Adjusted EBITDA through growing our existing book and vertically integrating our business model over time. We believe this will provide additional financial stability and opportunities in the market that would benefit all of our stakeholders.”

Conference Call and Webcast
Spark will host a conference call to discuss second quarter 2021 results on Thursday, August 5, 2021, 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 Spark Energy Investor Relations website at http://ir.sparkenergy.com/events-and-presentations. An archived replay of the webcast will be available for twelve months following the live presentation.

About Spark Energy, Inc.
Spark Energy, 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, Spark currently operates in 100 utility service territories across 19 states and the District of Columbia. Spark 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 Spark Energy Investor Relations website at ir.sparkenergy.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 COVID-19 and the 2021 severe weather event, cash flow generation and liquidity, business strategy, prospects for growth, outcomes of legal proceedings, ability to pay cash dividends, 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.

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 resolution of outstanding pricing and volume settlement data from ERCOT; the results of formal disputes regarding pricing and volume settlement data received to date; 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 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, 2020, and other public filings and press releases.

For further information, please contact:

Investor Relations:
Mike Barajas,
832-200-3727

Media Relations:
Kira Jordan,
832-255-7302

SPARK ENERGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Revenues:
Retail revenues	$	82,309		$	128,618		$	195,454		$	294,978
Net asset optimization (expense) revenue		(114	)		(82	)		(254	)		239
Total Revenues		82,195			128,536			195,200			295,217
Operating Expenses:
Retail cost of revenues		36,176			65,605			158,344			184,428
General and administrative		10,663			21,331			23,334			47,007
Depreciation and amortization		5,413			8,010			11,449			16,806
Total Operating Expenses		52,252			94,946			193,127			248,241
Operating income		29,943			33,590			2,073			46,976
Other (expense)/income:
Interest expense		(1,552	)		(1,193	)		(2,863	)		(2,746	)
Interest and other income		79			53			165			213
Total other expenses		(1,473	)		(1,140	)		(2,698	)		(2,533	)
Income (loss) before income tax expense		28,470			32,450			(625	)		44,443
Income tax expense		3,674			5,673			2,139			7,598
Net income (loss)	$	24,796		$	26,777		$	(2,764	)	$	36,845
Less: Net income (loss) attributable to non-controlling interests		14,313			15,618			(5,616	)		21,207
Net income attributable to Spark Energy, Inc. stockholders	$	10,483		$	11,159		$	2,852		$	15,638
Less: Dividend on Series A Preferred Stock		1,951			2,039			3,902			3,539
Net income (loss) attributable to stockholders of Class A common stock	$	8,532		$	9,120		$	(1,050	)	$	12,099

Net income (loss) attributable to Spark Energy, Inc. per share of Class A common stock
Basic	$	0.58		$	0.63		$	(0.07	)	$	0.84
Diluted	$	0.58		$	0.62		$	(0.07	)	$	0.83

Weighted average shares of Class A common stock outstanding
Basic		14,685			14,558			14,656			14,469
Diluted		14,820			14,763			14,767			14,569

Selected Balance Sheet Data	June 30,		December 31,
(in thousands)	2021		2020
Cash and cash equivalents		93,035		71,684
Working capital		146,721		114,213
Total assets		369,154		366,667
Total debt		145,000		100,000
Total liabilities		214,770		190,918
Total stockholders’ equity		58,784		64,854

Selected Cash Flow Data
	Six Months Ended June 30,
(in thousands)	2021			2020
Net cash provided by operating activities	$	9,168		$	71,783
Net cash used in investing activities	$	(1,063	)	$	(579	)
Net cash provided (used) in financing activities	$	24,751		$	(49,248	)

Operating Segment Results
	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021			2020
(in thousands, except volume and per unit operating data)
Retail Electricity Segment
Total Revenues	$	71,689	$	112,255	$	150,444		$	234,023
Retail Cost of Revenues		31,203		59,268		138,727			159,651
Less: Net gain on non-trading derivatives, net of cash settlements		18,835		17,414		24,352			7,993
Non-recurring event – Winter Storm Uri		–		–		(64,900	)		–
Retail Gross Margin⁽¹⁾ – Electricity	$	21,651	$	35,573	$	52,265		$	66,379
Volumes – Electricity (MWhs) ⁽³⁾		614,000		978,297		1,236,127			2,069,722
Retail Gross Margin ^{(2) (4)}– Electricity per MWh	$	35.26	$	36.36	$	42.28		$	32.07

Retail Natural Gas Segment
Total Revenues	$	10,620	$	16,363	$	45,010		$	60,955
Retail Cost of Revenues		4,973		6,337		19,617			24,777
Less: Net gain on non-trading derivatives, net of cash settlements		858		605		1,206			2,102
Retail Gross Margin ⁽¹⁾– Gas	$	4,789	$	9,421	$	24,187		$	34,076
Volumes – Gas (MMBtus)		1,268,051		1,967,439		5,097,525			7,249,738
Retail Gross Margin ⁽²⁾– Gas per MMBtu	$	3.78	$	4.79	$	4.75		$	4.70

⁽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” section below for a reconciliation of Adjusted EBITDA and Retail Gross Margin to their 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

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.

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.

Retail Gross Margin
We define retail gross margin as operating income (loss) plus (i) depreciation and amortization expenses and (ii) general and administrative expenses, less (iii) net asset optimization revenues (expenses), (iv) net gains (losses) on non-trading derivative instruments, (v) net current period cash settlements on non-trading derivative instruments and (vi) 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 an indicator of our retail energy business’s operating performance, retail gross margin should not be considered an alternative to, or more meaningful than, operating income (loss), 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.

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 operating income (loss). 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 operating income (loss). 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 operating income (loss), 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.

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)	2021			2020		2021			2020
Net income (loss)	$	24,796		$	26,777	$	(2,764	)	$	36,845
Depreciation and amortization		5,413			8,010		11,449			16,806
Interest expense		1,552			1,193		2,863			2,746
Income tax expense		3,674			5,673		2,139			7,598
EBITDA		35,435			41,653		13,687			63,995
Less:
Net, gain (loss) on derivative instruments		18,904			8,121		25,928			(16,466	)
Net cash settlements on derivative instruments		795			9,964		(390	)		26,572
Customer acquisition costs		243			210		456			1,555
Plus:
Non-cash compensation expense		1,104			490		1,571			1,814
Non-recurring event – Winter Storm Uri		–			–		60,000			–
Non-recurring legal settlement		(2,225	)		–		(2,225	)		–
Adjusted EBITDA	$	14,372		$	23,848	$	47,039		$	54,148

Reconciliation of Adjusted EBITDA to net cash provided in operating activities:
	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2021			2020			2021			2020
Net cash provided by operating activities	$	32,800		$	32,394		$	9,168		$	71,783
Amortization of deferred financing costs		(258	)		(240	)		(517	)		(490	)
Bad debt expense		(134	)		(1,378	)		113			(3,733	)
Interest expense		1,552			1,193			2,863			2,746
Income tax expense		3,674			5,673			2,139			7,598
Non-recurring event – Winter Storm Uri		–			–			60,000			–
Non-recurring legal settlement		(2,225	)		–			(2,225	)		–
Changes in operating working capital
Accounts receivable, prepaids, current assets		(20,058	)		(32,035	)		(31,761	)		(50,010	)
Inventory		965			709			(400	)		(1,981	)
Accounts payable and accrued liabilities		8,059			19,021			12,857			29,839
Other		(10,003	)		(1,489	)		(5,198	)		(1,604	)
Adjusted EBITDA	$	14,372		$	23,848		$	47,039		$	54,148
Cash Flow Data:
Net cash provided by operating activities	$	32,800		$	32,394		$	9,168		$	71,783
Cash flows used in investing activities	$	(543	)	$	(43	)	$	(1,063	)	$	(579	)
Net cash provided (used) in financing activities	$	(9,208	)	$	(8,198	)	$	24,751		$	(49,248	)

The following table presents a reconciliation of Retail Gross Margin to operating income (loss) for each of the periods indicated.

Reconciliation of Retail Gross Margin to Operating income:
	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2021			2020			2021			2020
Operating income	$	29,943		$	33,590		$	2,073		$	46,976
Plus:
Depreciation and amortization		5,413			8,010			11,449			16,806
General and administrative expense		10,663			21,331			23,334			47,007
Less:
Net asset optimization (expense) revenue		(114	)		(82	)		(254	)		239
Gain (loss) on non-trading derivative instruments		18,898			7,964			25,952			(16,569	)
Cash settlements on non-trading derivative instruments		795			10,055			(394	)		26,664
Non-recurring event – Winter Storm Uri		–			–			(64,900	)		–
Retail Gross Margin	$	26,440		$	44,994		$	76,452		$	100,455
Retail Gross Margin – Retail Electricity Segment ⁽¹⁾	$	21,651		$	35,573		$	52,265		$	66,379
Retail Gross Margin – Retail Natural Gas Segment	$	4,789		$	9,421		$	24,187		$	34,076

⁽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.

SOURCE: Spark Energy, Inc.

View source version on accesswire.com:
https://www.accesswire.com/658402/Spark-Energy-Inc-Reports-Second-Quarter-2021-Financial-Results

Spark Energy, Inc. to Present Second Quarter 2021 Financial Results on Thursday, August 5, 2021

Posted on July 23, 2021September 14, 2021 by mkeenan

HOUSTON, TX / ACCESSWIRE / July 23, 2021 / Spark Energy, Inc. (“Spark” or the “Company”) (NASDAQ:SPKE), an independent retail energy services company, announced today that it plans to present its second quarter 2021 financial results in a conference call and webcast on Thursday, August 5, 2021 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 Spark Energy Investor Relations website at ir.sparkenergy.com/events-and-presentations. An archived replay of the webcast will be available for twelve months following the live presentation.

About Spark Energy, Inc.

Spark Energy, 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. Headquartered in Houston, Texas, Spark currently operates in 19 states and serves 100 utility territories. Spark 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 Spark Energy Investor Relations website at ir.sparkenergy.com. Investors are urged to monitor our website regularly for information and updates about the Company.

Contact: Spark Energy, Inc.

Investors:

Mike Barajas, 832-200-3727

Media:

Kira Jordan, 832-255-7302

SOURCE: Spark Energy, Inc.

View source version on accesswire.com:
https://www.accesswire.com/656895/Spark-Energy-Inc-to-Present-Second-Quarter-2021-Financial-Results-on-Thursday-August-5-2021

Spark Energy, Inc. Announces Dividend on Common and Preferred Stock

Posted on July 21, 2021September 14, 2021 by mkeenan

HOUSTON, TX / ACCESSWIRE / July 21, 2021 / Spark Energy, Inc. (“Spark” or the “Company”) (NASDAQ:SPKE), an independent retail energy services company, announced today that its Board of Directors has declared a quarterly cash dividend for the second quarter of 2021 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, 2021 to holders of record of Spark’s Class A Common Stock on September 1, 2021.

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 $0.546875 per share on the Series A Preferred Stock. This amount represents an annualized dividend of $2.1875 per share. The dividend will be paid on October 15, 2021 to holders of record of Spark’s Series A Preferred Stock on October 1, 2021.

About Spark Energy, Inc.

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 Spark Energy Investor Relations website at ir.sparkenergy.com. Investors are urged to monitor our website regularly for information and updates about the Company.

Contact: Spark Energy, Inc.

Investors:

Mike Barajas, 832-200-3727

Media:

Kira Jordan, 832-255-7302

SOURCE: Spark Energy, Inc.

View source version on accesswire.com:
https://www.accesswire.com/656524/Spark-Energy-Inc-Announces-Dividend-on-Common-and-Preferred-Stock