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

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.

Contact: Via Renewables, Inc.

Investors:
Stephen Rabalais, 832-200-3727

Media:
Kira Jordan, 832-255-7302

SOURCE: Via Renewables, Inc.



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https://www.accesswire.com/709253/Via-Renewables-Inc-Announces-Dividend-on-Common-and-Preferred-Stock

Via Renewables, Inc. to Present Second Quarter 2022 Financial Results on Thursday, August 4, 2022

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.

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/709125/Via-Renewables-Inc-to-Present-Second-Quarter-2022-Financial-Results-on-Thursday-August-4-2022

Via Renewables, Inc. Announces New $195 Million Credit Facility

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.

Cautionary Note Regarding Forward Looking Statements

This press release contains forward-looking statements that are subject to a number of risks and uncertainties, many of which are beyond our control. These forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) can be identified by the use of forward-looking terminology including “may,” “should,” “could,” “likely,” “will,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “plan,” “intend,” “project,” or other similar words. All statements, other than statements of historical fact included in this press release are forward-looking statements. The forward-looking statements include statements regarding the 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.

Contact: Via Renewables, Inc.

Investors:

Mike Barajas, 832-200-3727

Media:

Kira Jordan, 832-255-7302

Via Renewables, Inc. Reports First Quarter 2022 Financial Results

HOUSTON, May 4, 2022 (ACCESSWIRE) — Via Renewables, Inc. (“Via Renewables” or the “Company”) (NASDAQ: VIA, VIASP), an independent retail energy services company, today reported financial results for the quarter ended March 31, 2022.

Key Highlights

  • Achieved $10.8 million in Adjusted EBITDA, $28.8 million in Retail Gross Margin and $31.0 million in Net Income for the first quarter
  • Total RCE count of 387,000 as of March 31, 2022
  • Average monthly attrition of 3.7% compared to 4.2% in first quarter 2021
  • Total liquidity of $96.0 million as of March 31, 2022

 

“Via experienced an increase in organic sales for the first quarter of 2022. Covid-19 impacts are subsiding and we were able to substantially increase our customer acquisition efforts in the first quarter year over year. We also saw a decline in attrition versus the first quarter of 2021. While our customer adds are beginning to ramp up, we are continually searching for new opportunities to grow our book either through acquisitions or new product offerings.” said Keith Maxwell, Via Renewables’ President and Chief Executive Officer.

 

Summary First Quarter 2022 Financial Results

Net income for the quarter ended March 31, 2022, was $31.0 million compared to net loss of $(27.6) million for the quarter ended March 31, 2021. The increase compared to the prior year was primarily the result of the $(64.9) million impact from winter storm Uri in the first quarter of 2021 partially offset by an increase in income tax expense.

For the quarter ended March 31, 2022, Via Renewables reported Adjusted EBITDA of $10.8 million compared to Adjusted EBITDA of $32.7 million for the quarter ended March 31, 2021. Lower year over year Adjusted EBITDA was driven by lower power and gas unit margins due to rising commodity prices and higher G&A expenses.

For the quarter ended March 31, 2022, Via Renewables reported Retail Gross Margin of $28.8 million compared to Retail Gross Margin of $50.0 million for the quarter ended March 31, 2021. Although RCE count and volume increased, increasing commodity prices led to a decrease in Retail Gross Margin.

Liquidity and Capital Resources

($ in thousands)

March 31, 2022

Cash and cash equivalents $                           51,363
Senior Credit Facility Availability (1)                              34,623
Subordinated Debt Facility Availability (2)                              10,000
Total Liquidity $                           95,986

(1) Reflects amount of Letters of Credit that could be issued based on existing covenants as of March 31, 2022.

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

 

Dividend

On April 21, 2022, Via Renewables’ Board of Directors declared quarterly dividends of $0.18125 per share on its Class A common stock payable on June 15, 2022 to holders of record on June 1, 2022, and $0.476393 per share on its Series A Preferred Stock payable on July 15, 2022 to holders of record on July 1, 2022.

Business Outlook

Mr. Maxwell concluded, “We’re currently experiencing positive growth in our organic sales channels. Via is also offering new products such as a surge protection plan in Texas, and a smart home transformation product. We’ve received favorable responses from our customers thus far and will continue to explore these types of diverse and accretive products.”

Conference Call and Webcast

Via will host a conference call to discuss first quarter 2022 results on Thursday, May 5, 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://viawirelessllc.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://viawirelessllc.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 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 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 STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
 

Three Months Ended March 31,
2022 2021
Revenues:
Retail revenues $           128,058 $           113,145
Net asset optimization expense                    (904)                   (140)
Total Revenues              127,154              113,005
Operating Expenses:
Retail cost of revenues                68,707              122,168
General and administrative                14,935                12,671
Depreciation and amortization                  5,184                  6,036
Total Operating Expenses                88,826              140,875
Operating income (loss)                38,328              (27,870)
Other (expense)/income:
Interest expense                 (1,307)                (1,311)
Interest and other income                       48                       86
Total other expenses                 (1,259)                (1,225)
Income (loss) before income tax expense                37,069              (29,095)
Income tax expense (benefit)                 6,044                (1,535)
Net income (loss) $             31,025 $           (27,560)
Less: Net income (loss) attributable to non-controlling interests                18,052              (19,929)
Net income (loss) attributable to Via Renewables, Inc. stockholders $             12,973 $             (7,631)
Less: Dividend on Series A Preferred Stock                  1,951                  1,951
Net income (loss) attributable to stockholders of Class A common stock $             11,022 $             (9,582)
Net income (loss) attributable to Via Renewables, Inc. per share of Class A common stock
       Basic $                 0.70 $               (0.66)
       Diluted $                 0.70 $               (0.66)
Weighted average shares of Class A common stock outstanding
       Basic                15,656                14,627
       Diluted                15,796                14,627

 

Selected Balance Sheet Data
(in thousands) March 31, 2022 December 31, 2021
Cash and cash equivalents $                              51,363 $                              68,899
Working capital $                            131,750 $                            114,188
Total assets $                            352,748 $                            355,276
Total debt $                            121,000 $                            135,000
Total liabilities $                            192,264 $                            217,637
Total stockholders’ equity $                              62,082 $                              53,352

 

Selected Cash Flow Data
Three Months Ended March 31,
(in thousands) 2022 2021
Net cash provided by (used in) operating activities $                                4,583 $                             (23,632)
Net cash used in investing activities $                               (3,598) $                                  (520)
Net cash (used in) provided by financing activities $                             (22,525) $                              33,959

 

Operating Segment Results
(in thousands, except volume and per unit operating data) Three Months Ended March 31,
2022 2021
Retail Electricity Segment
Total Revenues $               88,041 $                78,755
Retail Cost of Revenues                   46,160                 107,524
Less: Net gain on non-trading derivatives, net of cash settlements                   24,695                     5,517
Non-recurring event – Winter Storm Uri                           —                  (64,900)
Retail Gross Margin (1)  — Electricity $               17,186 $                30,614
Volumes — Electricity (MWhs) (3)                 685,152                 622,128
Retail Gross Margin (2) (4) — Electricity per MWh $                  25.08 $                  49.21
Retail Natural Gas Segment
Total Revenues $               40,017 $                34,390
Retail Cost of Revenues                   22,547                   14,644
Less: Net gain on non-trading derivatives, net of cash settlements                     5,901                         348
Retail Gross Margin (1) — Gas $               11,569 $                19,398
Volumes — Gas (MMBtus)             4,657,118              3,829,474
Retail Gross Margin (2) — Gas per MMBtu $                    2.48 $                    5.07

(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 three months ended March 31, 2021
(4)  Retail Gross Margin – Electricity per MWh excludes Winter Storm Uri impact for the three months ended March 31, 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, 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.

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.

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:
Three Months Ended March 31,
(in thousands) 2022 2021
Net income (loss) $               31,025 $              (27,560)
Depreciation and amortization                     5,184                     6,036
Interest expense                     1,307                     1,311
Income tax expense (benefit)                     6,044                    (1,535)
EBITDA                   43,560                 (21,748)
Less:
Net, gain on derivative instruments                   45,063                     7,024
Net cash settlements on derivative instruments                 (13,136)                    (1,185)
Customer acquisition costs                     1,196                        213
       Plus:
       Non-cash compensation expense                        351                        467
Non-recurring event – Winter Storm Uri                           —                   60,000
Adjusted EBITDA $               10,788 $               32,667

 

Reconciliation of Adjusted EBITDA to net cash provided in operating activities:
Three Months Ended March 31,
(in thousands) 2022 2021
Net cash provided by (used in) operating activities $                  4,583 $              (23,632)
Amortization of deferred financing costs                       (245)                       (259)
Bad debt expense                    (1,024)                         247
Interest expense                     1,307                     1,311
Income tax expense (benefit)                     6,044                    (1,535)
Non-recurring event – Winter Storm Uri                           —                   60,000
Changes in operating working capital
Accounts receivable, prepaids, current assets                        555                  (11,703)
Inventory                    (1,874)                    (1,365)
Accounts payable and accrued liabilities                     5,577                     4,798
Other                    (4,135)                     4,805
Adjusted EBITDA $               10,788 $                32,667
Cash Flow Data:
Net cash provided (used) in operating activities $                  4,583 $              (23,632)
Net cash used in investing activities $                (3,598) $                    (520)
Net cash (used in) provided by financing activities $              (22,525) $                33,959

 

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 March 31,
(in thousands) 2022 2021
Operating income (loss) $                38,328 $              (27,870)
Plus:
Depreciation and amortization                      5,184                     6,036
General and administrative expense                    14,935                   12,671
Less:
Net asset optimization expense                        (904)                       (140)
Gain on non-trading derivative instruments                    43,916                     7,054
Cash settlements on non-trading derivative instruments                  (13,320)                    (1,189)
Non-recurring event – Winter Storm Uri                            —                  (64,900)
Retail Gross Margin $                28,755 $                50,012
Retail Gross Margin – Retail Electricity Segment (1) $                17,186 $                30,614
Retail Gross Margin – Retail Natural Gas Segment $                11,569 $                19,398

(1) Retail Gross Margin for the three months ended March 31, 2021 includes a $64.9 million add back related to Winter Storm Uri.

Via Renewables, Inc. to Present First Quarter 2022 Financial Results on Thursday, May 5, 2022

HOUSTON, TX / ACCESSWIRE / April 22, 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 first quarter 2022 financial results in a conference call and webcast on Thursday, May 5, 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.

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/698523/Via-Renewables-Inc-to-Present-First-Quarter-2022-Financial-Results-on-Thursday-May-5-2022

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

HOUSTON, April 21, 2022 (ACCESSWIRE) – 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 first 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 first quarter dividend will be paid on June 15, 2022 to holders of record of Via Renewables’ Class A Common Stock on June 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 $0.476393 per share on the Series A Preferred Stock. The dividend will be paid on July 15, 2022 to holders of record of Via Renewables’ Series A Preferred Stock on July 1, 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.

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 Fourth Quarter and Full Year 2021 Financial Results

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://viawirelessllc.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://viawirelessllc.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
  1. 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

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

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

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://viawirelessllc.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://viawirelessllc.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 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.

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 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.

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:
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.