Q2 2023 Via Renewables Inc Earnings Call

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Good morning, ladies and gentlemen, and welcome to the V ever know both second quarter 2023 earnings Conference call. My name is Devon, and I will be your operator today.

All participants are in a listen only line should you need operator assistance. Please press star zero on your telephone keypad.

As a reminder, this conference is being recorded for replay purposes, and this call will be uploaded via renewables website I would now like to turn the conference over to Mr. Steven Rabalais with me ever know those please go ahead.

Thank you.

Morning, and welcome to via Renewables second quarter 2023 earnings call. This call is also being broadcast via webcast, which can be located in the Investor Relations section of our website and 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.

We urge everyone to review the Safe Harbor statement 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 for 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'll turn the call over to Keith Maxwell our CEO .

Thank you Stephen I want to welcome everyone to todays earnings call I'll be providing a summary of results from the second quarter and then our CFO , Mike Ball hospital provide more details on the financials.

In the second quarter, we reported adjusted EBITDA of $12 million, which is like 1.3 million decrease from the prior year of $14 3 million.

Highlights from the second quarter include increasing our organically from the second quarter in a row, reducing our debt and increasing our liquidity.

We added 39000 recs in the second quarter of 2020 compared to 16000 actually ease in the second quarter of 2022, our average quarterly attrition remained at 3.1 year over year. It's also important to note that the second quarter of 2022 included a four point.

$4 million add back to adjusted EBITDA related to the winter storm Yuri.

In the second half of the year, we continue to focus on customer growth.

And organic and mass market channels as well as through potential.

Potential inorganic acquisition.

We will continue to work towards strengthening our balance sheet.

<unk> paying down our debt conserving cash and investing in future growth.

This way, we can provide long term trouble shareholder right.

That concludes my prepared remarks, and now I'll turn the call over to Mike for his financial review Mike.

Thank you Keith good morning in the second quarter, we achieved $12 million and adjusted EBITDA compared to last year's second quarter of $13 3 million, which included a $4 4 million dollar one time add back related to winter storm here.

Retail gross margin for the quarter was $30 $7 million compared with $23 $7 million last year, resulting from higher unit margins in both our retail electricity and natural gas segments.

In our retail electricity segment gross margin was $23 million compared to $16 $7 million in the second quarter of last year.

This was due to higher unit margins, partially offset by lower volumes at year over year.

In our retail natural gas segment gross margin was seven $6 million compared to $7 million in the second quarter last year.

This was due to both slightly higher unit margins and volumes at year over year.

G&A expenses of $16 $7 million were higher compared to $13 $6 million in the second quarter last year, primarily due to increased sales marketing and legal expenses in part due to a $1.7 million legal expense reduction in 2022 as a result of settled litigation.

These expenses were partially offset by a decrease in noncash compensation.

Total RC ease we're at 346000 compared to 368000 for the second quarter of 2022 our.

Our attrition of three 1% is flat to the second quarter of 2022, which resulted from a combination of lower attrition on our commercial book and higher attrition on our mass market book, partially due to increased sales efforts.

Our net income for the quarter was $19 1 million or income of $1 67 per fully diluted share compared to net income of $12 $5 million or 92 cents per fully diluted share for the second quarter of 2022.

The increase is mainly due to an increase in the mark to market on our hedges that we put in place to lock in margins on our retail contracts, we had a mark to market gain this quarter of 15 point my $9 million.

Compared to a mark to market gain of $3 $7 million a year ago.

The increase was partially offset by both an increase in G&A expenses and income tax expense.

Income tax expense increased to $5 $2 million in the second quarter of 2023 from $2 $7 million and 25 to <unk>.

On July 17th we paid the quarterly cash dividend on our series a preferred stock on July 19, we declared a dividend in the amount of $75 90 to two cents per share on our preferred stock to be paid on October 16th.

That's all I have back to you Keith.

Thanks, Mike I want to thank our employees for their care and dedication to growing at some point.

Suppliers for their continued support and I want to thank me as customers are choosing us as their energy provider.

We are excited about the future and we look forward to connecting with you on our Mexico. Thank you.

This concludes today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation and have a wonderful day.

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