Q3 2022 Via Renewables Inc Earnings Call
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Good morning, ladies and gentlemen, and welcome to the every new bowls incorporated third quarter 2022 earnings conference call. My name is Melissa and I will be your operator for today.
At this time all participants are in a listen only mode.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
As a reminder, this conference is being recorded for replay purposes, and this call will be posted on.
By renewables website I would now like to turn the conference over to Mr. Steven rapidly.
Every new bowls. Please go ahead.
Thank you Melissa.
Good morning, and welcome to via Renewables third quarter 2022 earnings call.
This call is also being broadcast via webcast, which can be located in the Investor Relations section of our website at via renewables Dot com.
With us today from management is our CEO , Keith Maxwell and our CFO Michael Ross.
Please note that today's discussion may contain forward looking statements, which are based on assumptions that we believe to be reasonable as of this date.
Actual results may differ materially.
Everyone to review the Safe Harbor statements in yesterday's earnings release as well as the risk factors in our SEC filings. We undertake no obligation to update these statements as a result of future events, except as required by law.
In addition, we will refer to both GAAP and non-GAAP financial measures.
Information regarding our non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures. Please refer to yesterday's earnings release with that I will turn the call over to Keith Maxwell as CEO .
Thank you Stephen I want to welcome everyone to today's earning call I'll begin by providing a summary of results from the third quarter and then our CFO , Mike <unk>, who will provide more details on the financial results in the third quarter, we reported an adjusted EBITDA of $15 1 million compared to $22 million.
In the third quarter of 2021.
The decrease is mainly contributed are attributable to a reduction in G&A in 2021.
The largest factors where legal accrual reductions.
And a $1 one payroll tax credit taken in the third quarter of 2021. Additionally, we had a half million add back for.
The.
Winter storm Uri in the third quarter of 2021, the decreases are shortly partly due to a $1 4 million increase in customer acquisition spend.
We have spent $1 7 million in customer acquisition spend compared to <unk> 3 million in the third quarter of 2021.
<unk> remains dedicated to growing organically as well as through strategic acquisitions, we're pleased to announce that in the third quarter. We entered into an agreement to acquire approximately 18700, Rcs and Florida gas market and we're excited to expand our footprint and Florida Historically, our book has been more heavily weighted in the north.
The east and mid Atlantic regions, we believe the geographical diversification, we will continue to add to the stability and the predictability of our cash flow.
That concludes my prepared remarks, and now I'll turn the call over to Mike for his financial review and review.
Thank you Keith good morning in the third quarter, we achieved $15 1 million and adjusted EBITDA compared to last year's third quarter, a $22 million.
Retail gross margin for the quarter was $30 5 million compared with $39 million last year.
In our retail electricity segment gross margin was $28 5 million compared to $28 $2 million in the third quarter of last year.
This was due to an increase in unit margins offset by a decrease in volume year over year.
And our retail natural gas segment gross margin was $1 9 million compared to $2 7 million in the third quarter of last year.
This decrease was attributable to lower unit margins, partially offset by higher volumes.
G&A expenses of $16 $3 million were higher compared to $9 $7 million in the third quarter last year, primarily due to a reduction in legal accruals and a $1 $1 million payroll tax credit both occurring in 2021.
In addition sales and marketing expenses have increased due to ramping up sales.
Total <unk> in the third quarter were 336000 compared to 368000 in 2021.
Additionally, our attrition of 4% is up from two 4% year over year.
This increase is a result of rising commodity prices around the country.
Our net loss for the quarter was $4 $9 million or a loss of <unk> 18 per fully diluted share compared to net income of $34 7 million or income of 80 <unk> per share.
Per fully diluted share for the third quarter of 2020.
The decrease is mainly related to a $42 $1 million decrease in our mark to market gains.
We had a mark to market loss this quarter of $15 $5 million compared to a mark to market gain of $26 $6 million a year ago.
Interest expense increased to $2 $1 million compared to $1 3 million in the third quarter of 2021.
The decrease in net income is partially offset by a decrease in income tax we had a benefit of $48000 in 2022 compared with the expense of $79 in the third quarter of 2021, and a decrease in depreciation and amortization expense of $3 3 million compared to $5 million third quarter of 2021.
On September 15th and October 17th we paid the quarterly cash dividends on our class a common stock and series a preferred stock respectively.
On October 20, we announced third quarter dividends of $18 <unk> per share on our common stock to be paid on December 15th and.
And $66 six 107 per share of preferred stock to be paid on January 17.
That's all I have.
Thanks, Mike I want to thank all of our employees for their care and dedication to growing and supporting via and to our suppliers for their continued support also want to thank our via customers for choosing us as their energy provider. We're excited about the future and we look forward to connecting with you on our next call. Thank you.
Thank you. This concludes today's teleconference. You may disconnect. Your lines at this time and thank you for your participation and have a wonderful day.
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Yes.
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Sure.
With regard.