Q3 2023 Via Renewables Inc Earnings Call

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Good morning, ladies and gentlemen, welcome to the via Renewables, Inc. Third quarter 2023 earnings Conference call. My name is John and I'll be your operator for today, 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 the via renewable Inc's website I would now like to turn the conference over to Mr. Steven Rabalais with via Renewables, Inc. Please go ahead Sir.

Thank you.

Good morning, and welcome to build renewables third 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 be ever noga in Stockholm.

With us today from management is our CEO, Keith Maxwell and 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 begin by providing a summary of our results for the third quarter and then our CFO, Mike Ball hospital provide more detail on the financials.

In the third quarter, we recorded EBITDA of $12 8 million.

Which is $2 3 million decrease from the prior year of $15 1 million in the third quarter, we experienced relatively mild weather in the northeast as well as one of the hottest summers on record in the.

Aercap servicer.

However, we were able to successfully navigate the quarter due to our prudent risk policies and portfolio diversification.

We finished the quarter on bulk lawyer, lower attrition and that's slightly higher our seat count from the third quarter of 2022.

We continue to maintain our focus on organic growth channels and customer retention.

We added approximately 24000 are seized this quarter.

Furthermore, we remain committed to strengthening our balance sheet by paying down debt, which has improved our liquidity and working capital.

Financial Flex Black's ability provides us with the ability to pursue.

T J rope opportunities and mitigate the impacts of unforeseeable future weather events.

This concludes my prepared remarks, now I'll turn it over to Mike for his financial review Mike.

Thank you Keith good morning.

And the third quarter, we achieved $12 $8 million and adjusted EBITDA compared to last year's third quarter of $15 $1 million reached.

Retail gross margin for the quarter was $31 $9 million compared with $35 million last year.

In our retail electricity market gross margin was $26 million compared to $28 $5 million in the third quarter of last year.

The decrease was mostly due to lower volumes, which resulted from mild weather in the northeast, but was partially offset by slightly higher unit margins year over year.

And our retail natural gas segment gross margin was $5 $2 million compared to $1 $9 million in the third quarter of last year. This was due to both higher volumes and unit margins year over year, the higher volumes were due to a higher Archie count in 2023.

G&A expenses were $17 $1 million compared to $16 $3 million in the third quarter last year, primarily due to increased sales and marketing expenses and broker fees.

This was partially offset by a reduction in bad debt and legal expenses.

We ended the quarter at 337000, our CS compared to 336000 are seized to end the third quarter of 2022.

Our attrition was three 1% compared to 4% in the third quarter of 2022, which resulted from lower attrition on our mass market book.

Our net income for the quarter was $14 $7 million or income of $1.47 per fully diluted share compared to a net loss of $4 $9 million or negative <unk> 92 cents per fully diluted share for the third quarter of 2022.

This is mainly due to an increase in the mark to market on our hedges that we've put in place to lock in margins on our retail contracts.

We had a mark to market gain this quarter of $8 $1 million compared to a mark to market loss of $15 $7 million a year ago.

We also had a $1.5 million reduction in depreciation expense.

The increase was partially offset by increases in income tax net asset optimization and G&A expenses.

Income tax expense was $3 $4 million in the third quarter of 2023 compared to a benefit of 48 148.1 thousand in the third quarter of 2022.

On October 16th we paid the quarterly cash dividends on our series a preferred stock on October 18th we declared a dividend in the amount of 76.459 cents per share on our preferred stock to be paid on January 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 and supporting them and our suppliers for their continued support and the banks as well I want to thank the customers are choosing us as their electric football or their energy provider.

We're excited about the future and look forward to connecting with you all on that.

Yeah.

This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.

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