Via Renewables Reports Lower Retail Margins, RCE Count -- EnergyChoiceMatters.com

Via Renewables Reports Lower Retail Margins, RCE Count

August 3, 2022

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Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Via Renewables, Inc. ("Via Renewables" or the "Company") today reported financial results for the quarter ended June 30, 2022.

In reporting earnings, Via reported that its total RCE count was 368,000 as of June 30, 2022, compared to 387,000 as of March 31, 2022, and 408,000 as of December 31, 2021

Via reported average monthly attrition of 3.1% during the quarter ended June 30, 2022, compared to 3.3% in the second quarter of 2021

"In the second quarter of 2022, we were able to increase our customer acquisition spend considerably from the second quarter of 2021. We've been hitting our telemarketing goals while continuing to ramp our D2D channels. Attrition has slightly decreased compared to the second quarter of 2021 even with increased sales due to climbing market rates. Customers are finding it harder to shop rates with both utilities and retail providers raising rates to keep up with the rising cost of energy," said Keith Maxwell, Via Renewables' President and Chief Executive Officer.

Maxwell added, "Our focus is on optimizing our book and operationalizing in today's turbulent market climate, which includes record demand and volatile commodity prices. In order to drive growth, we will continue to expand our organic sales channels and new product offerings, along with actively pursuing potential acquisitions to complement our customer portfolio."

For the quarter ended June 30, 2022, Via Renewables reported Adjusted EBITDA of $13.3 million compared to Adjusted EBITDA of $14.4 million for the quarter ended June 30, 2021. Lower quarter over quarter Adjusted EBITDA was driven by lower electricity and natural gas unit margins due to rising commodity prices, higher CAC spend and higher G&A expenses, partially offset by a $4.4 million non-recurring addback, which is the result of receiving $9.6 million from ERCOT related to Winter Storm Uri. The additional $5.2 million benefit was taken in the first quarter of 2021.

For the quarter ended June 30, 2022, Via Renewables reported Gross Profit of $35.4 million compared to Gross Profit of $46.0 million for the quarter ended June 30, 2021. The decrease, compared to the prior year, was largely the result of a reduction in mark-to-market on hedges partially offset by the $9.6 million received from ERCOT related to Winter Storm Uri. Additionally, while revenue increased in the second quarter of 2022, it was offset by higher cost of revenues due to rapidly rising commodity prices compared to the second quarter of 2021, the Company said

For the quarter ended June 30, 2022, Via Renewables reported Retail Gross Margin of $23.7 million compared to Retail Gross Margin of $26.4 million for the quarter ended June 30, 2021. Increasing commodity prices were the driving factor in the decrease partially offset by higher natural gas volumes, Via said

Electricity Retail Gross Margin was $27.69 per MWh for the quarter ending June 30, 2022, versus $35.26 per MWh a year ago

Natural gas Retail Gross Margin was $3.59 per MMBtu for the quarter ending June 30, 2022, versus $3.78 per MMBtu a year ago

Net income for the quarter ended June 30, 2022, was $12.5 million compared to net income of $24.8 million for the quarter ended June 30, 2021. The decrease, compared to the prior year, was largely the result of a reduction in mark-to-market on our hedges, partially offset by a reduction in income tax expense, depreciation, and amortization expense.

Via reported total liquidity of $71.1 million as of June 30, 2022

Via highlighted its previously reported new $195 million Credit Facility, which replaced the existing facility, on June 30, 2022

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