Via Renewables (f/k/a Spark Energy) Reports Higher Customer Count On Acquisitions, Adjusted EBITDA Lower
November 4, 2021 Email This Story Copyright 2010-21 EnergyChoiceMatters.com
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In reporting third quarter earnings, Via Renewables, Inc. (formerly Spark Energy) reported that its total RCE count was 368,000 as of September 30, 2021, compared to 347,000 as of June 30, 2021
Customers from a series of acquisitions, entered into in May, totaling 56,900 RCEs began being served by Spark during the third quarter. "In May 2021, we entered into a series of asset purchase agreements and agreed to acquire up to approximately 56,900 RCEs for a cash purchase price of up to a maximum of $11.5 million," Via Renewables said
"During the three months ended September 30, 2021, we added approximately 28,000 RCEs as a result of a series of asset purchase agreements entered in May 2021," Via Renewables said
"During the three months ended September 30, 2021, we added approximately 19,000 RCEs primarily through our various organic sales channels. We expect to acquire customers organically in future periods but it will be slower in the near term, however we expect this number to increase on a monthly basis," Via Renewables said
Gross RCE additions during the third quarter of 2021 were 47,000 and gross attrition during the third quarter of 2021 was listed as 26,000 RCEs in a 10-Q.
Via Renewables in a 10-Q noted, concerning a previously reported separate transaction, that, "In July 2021, we entered into an agreement to acquire up to approximately 50,000 RCEs and derivatives related to the customer load under a five-year contingent fee structure based on gas volume billed and collected for the acquired customer contracts. These customers will begin transferring in the fourth quarter of 2021, and are located in our existing markets. Due to the contingent fee structure, the cost of the RCEs will be recognized when probable and reasonably estimable."
See recent stories on Via Renewables' books acquisitions, including identity of the sellers, here and here
"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.
Maxwell added that, "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."
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," Via said
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," Via said
For the three months ended September 30, 2021, Retail Gross Margin in the Retail Electricity Segment was $36.29 per MWh, versus $36.69 per MWh a year ago
For the three months ended September 30, 2021, Retail Gross Margin in the Retail Gas Segment was $3.98 per MMBtu, versus $4.50 per MMBtu a year ago
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.
Average monthly attrition was 2.4%
Via reported total liquidity of $134.5 million as of September 30, 2021