Via Renewables Reports Organic Customer Growth, Higher Unit Margins
August 2, 2023 Email This Story Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
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Via Renewables, Inc. ("Via Renewables" or the "Company") today reported financial results for the quarter ended June 30, 2023.
Total RCE count was 346,000 as of June 30, 2023, up from 339,000 as of March 31, 2023.
"We are proud to announce another strong quarter marked by organic growth in our customer book and continued financial discipline. Our proactive efforts in expanding our customer base allowed us to increase our RCEs for the second consecutive quarter," said Keith Maxwell, Via Renewables' President and Chief Executive Officer.
For the quarter ended June 30, 2023, Via Renewables reported Adjusted EBITDA of $12.0 million compared to Adjusted EBITDA of $13.3 million for the quarter ended June 30, 2022. The decrease was driven by a $4.4 million one time add back related to Winter Storm Uri in the second quarter of 2022 coupled with a $4.1 million increase in G&A expense, excluding non-cash compensation expense. This was largely offset by a $7.0 million increase in Retail Gross Margin, the company said
For the quarter ended June 30, 2023, Via Renewables reported Gross Profit of $45.5 million compared to Gross Profit of $35.4 million for the quarter ended June 30, 2022. The increase, compared to the prior year, was predominately the result of an increase in the mark-to-market on hedges and an increase in Retail Gross Margin for the retail electricity segment. The increase was partially offset by the $9.6 million add back to Retail Gross Margin related to Winter Storm Uri in the second quarter of 2022, the company said
For the quarter ended June 30, 2023, Via Renewables reported Retail Gross Margin of $30.7 million compared to Retail Gross Margin of $23.7 million for the quarter ended June 30, 2022. The $7.0 million increase in Retail Gross Margin was mainly due to higher unit margins for both retail electricity and natural gas coupled with higher natural gas volumes. This was partially offset by decreased retail electricity volumes, the company said
Via stated, "On July 19, 2023, we declared a dividend in the amount of $0.75922 per share for the Series A Preferred Stock, which will be paid on October 16, 2023 to holders of record on October 1, 2023. The Company previously elected to suspend its common stock dividend seeking to enhance its financial flexibility and improve its ability to manage market volatility while focusing on strengthening its balance sheet and investing in both organic and inorganic customer growth. Via Renewables will continue to closely monitor market conditions and the Board will thoughtfully evaluate the timing of for reinstatement of the Class A common stock dividend."
Maxwell stated, "We're strengthening our balance sheet which gives us additional financial flexibility as we navigate the ERCOT summer months. We've been able to lower our total debt and increase our liquidity over the three months ending June 30, 2023."
Via reported that total liquidity was $86.3 million as of June 30, 2023