Vertex Energy, Inc. (NASDAQ: VTNR) (“Vertex” or the “Company”),
a leading specialty refiner and marketer of high-quality refined
products, today announced its financial results for the second
quarter ended June 30, 2023.
The Company will host a conference call to discuss second
quarter 2023 results today at 8:30 A.M. Eastern Time, details are
included at the end of this release.
SECOND QUARTER 2023 HIGHLIGHTS
- Reported net loss attributable to common shareholders of
$(81.4) million, or $(1.03) per basic share
- Reported Adjusted EBITDA of $(34.2) million
- Continued safe operation of the Company’s Mobile, Alabama
refinery (the “Mobile Refinery”) with second quarter 2023
conventional throughput of 76,330 barrels per day (bpd), above
prior guidance
- Renewable diesel (RD) facility repair and start-up successfully
completed with targeted Phase I throughput capacity of 8,000 bpd
demonstrated during the quarter
- Lower conventional refining margins driven by weakness in
market prices for refined fuels and additional costs incurred
during RD repair and start-up procedure
- Total cash and cash equivalents of $52.1 million including
restricted cash of $3.6 million as of June 30, 2023
Vertex reported second quarter 2023 net loss attributable to
common shareholders of $(81.4) million, or $(1.03) per basic share,
versus a net loss attributable to common shareholders of $(67.0)
million, or $(0.99) per basic share for the second quarter of 2022.
Adjusted EBITDA (see “Non-GAAP Financial Measures”, below) was
$(34.2) million for the second quarter 2023, compared to Adjusted
EBITDA of $71.3 million in the prior-year period. Financial results
for the second quarter of 2023 include a non-cash, one-time
interest expense in the amount of $63.0 million related to the
recent privately negotiated exchange of approximately $79.9 million
of Vertex’s Senior Secured 6.25% Convertible Notes Due 2027, which
closed on June 12, 2023. Schedules reconciling the Company’s
generally accepted accounting principles in the United States
(“GAAP”) and non-GAAP financial results, including Adjusted EBITDA
are included later in this release (see also “Non-GAAP Financial
Measures”, below).
MANAGEMENT COMMENTARY
“During the second quarter, we made considerable progress in
developing our broader strategic vision of creating a vertically
integrated renewable fuels company,” stated Benjamin P. Cowart,
President and CEO of Vertex, who continued, “While short-term
profitability on the conventional fuels refining business was
negatively impacted by a combination of deterioration in market
conditions and the added expense associated with the start-up of
our renewable diesel facility, we successfully achieved several
important strategic milestones through establishing RD production,
accelerating our feedstock strategy, and improving balance sheet
efficiency, which we believe will help drive greater long-term
shareholder value for the company.”
SEGMENT PERFORMANCE
MOBILE REFINERY OPERATIONS
The Mobile Refinery operations generated a gross profit (loss)
of ($6.4) million and $52.7 million of fuel gross margin (a
non-GAAP measure) or $7.34 per barrel during the second quarter
2023, versus generating a gross profit of $65.5 million, and fuel
gross margin (a non-GAAP measure) of $103.8 million, or $16.17 per
barrel of fuel gross margin in the first quarter of 2023. Adjusting
for the impact of $3.66 of Renewable Identification Number (RIN)
expense per barrel, RIN adjusted fuel gross margin at the Mobile
Refinery was $27.3 million, or $3.68 per barrel for the second
quarter of 2023, versus $87.7 million, or $13.66 per barrel of RIN
adjusted fuel gross margin in the first quarter of 2023. On an
adjusted fuel gross margin per barrel basis, including the impact
of renewable diesel production, the Mobile Refinery captured 31% of
the Gulf Coast 2-1-1 crack spread. Adjusting for the partial
production period of renewable diesel and limited revenue
contribution during the quarter, the Mobile Refinery generated a
conventional only fuel gross margin per barrel of 34%.
The decline in adjusted fuel gross margin per barrel and
resulting deterioration in reported capture rate of the benchmark
Gulf Coast 2-1-1 crack spread was attributed to a decline in
margins for refined products, compounded by approximately $20
million of one-time expenses incurred as a result of the repair and
resumed start-up procedures of the Company’s renewable diesel
facility during the quarter. The benchmark Gulf Coast 2-1-1 crack
spread decreased from $31.59 per barrel in the first quarter of
2023 to $23.60 in the second quarter, while pricing for refined
products outside of the benchmark crack spread, such as Jet fuel,
which experienced significant pressure during the second quarter of
2023.
Financial results for the Mobile Refinery reported for the
second quarter of 2023 reflect the combined contribution of
conventional fuels refining operations, as well as the operation of
the Company’s renewable diesel facility which began production on
May 27th. The partial production period and limited revenue
recorded from the renewable diesel facility, compounded by the
additional expenses incurred for the repair of feedstock pumping
systems, as well as typical one-time start-up expenses, had a
disproportionate negative impact on overall refining profitability
during the quarter and we believe this does not reflect the state
of operating profitability for the facility longer-term.
Total throughput at the Mobile Refinery was 78,820 bpd in the
second quarter of 2023, including 76,330 bpd of conventional and
2,490 bpd of renewable throughput, respectively. Total production
of finished high-value, light products, such as gasoline, diesel
and jet fuel, represented approximately 61% of the total production
in the second quarter of 2023, vs. 62% in the first quarter 2023,
as anticipated. Changes in the Company’s product yield profile have
led to a higher percentage of products not accounted for in the
benchmark Gulf Coast 2-1-1 crack spread. Consequently, this has
caused the reported capture rate of the benchmark crack spread to
vary significantly.
Third Quarter 2023 Mobile Refinery Financial and
Operating Results ($/millions unless otherwise noted)
SEGMENT PERFORMANCE
1Q23
2Q23
2023 YTD
%Q/Q
Total Throughput (bpd)1
71,328
78,820
75,095
11%
Total Production (MMbbl)1
6.24
7.19
13.43
15%
Conventional Facility Capacity
Utilization2
95.1%
101.8%
98.5%
Total Operating Expense
$26.5
$30.4
$55.1
15%
Operating Expenses Per Barrel ($/bbl)
$3.84
$4.23
$4.05
10%
Fuel gross margin
$103.8
$52.7
$156.5
-49%
RIN expense3
$16.1
$25.4
$41.5
58%
RIN Adjusted Fuel Gross Margin
$87.7
$27.3
$115.0
-69%
Fuel Gross Margin Per Barrel ($/bbl)
$16.17
$7.34
$11.51
-55%
RIN expense Per Barrel ($/bbl)
$2.51
$3.66
$3.05
46%
RIN Adjusted Fuel Gross Margin Per Barrel
of Throughput
$13.66
$3.68
$8.46
-73%
Gulf Coast 2-1-1 Crack Spread
$31.59
$23.60
$27.59
-25%
Capture Rate5
53.0%
33.9%
39.4%
-36%
Adjusted Capture Rate
43.2%
15.6%
30.7%
-64%
Production
Yield
Gasoline (bpd)
15,723
17,812
16,774
13%
% Production
22.7%
23.2%
22.6%
ULSD (bpd)
14,720
15,618
15,171
6%
% Production
21.2%
20.3%
20.4%
Jet (bpd)
12,789
13,570
13,182
6%
% Production
18.4%
17.7%
17.8%
Other4
26,119
29,828
27,983
14%
% Production
37.7%
37.7%
37.7%
Renewable diesel
0
2,208
1,110
0%
% Production
0.0%
2.8%
1.5%
Total Production (bpd)
69,351
79,036
74,220
14%
Total Production (MMbbl)
6.24
7.19
13.43
15%
1.) Includes soybean oil
throughput of 2,490 bpd and 1.252 MMbbl for 2Q23 and YTD,
respectively
2.) Assumes 75,000 barrels per
day of conventional operational capacity
3.) RIN: Renewable identification
number
4.) Other includes naphtha,
intermediates, and LPG
5.) Capture rate reflects
conventional fuels gross margin only
Renewable Diesel Facility
Renewable diesel production facility successfully started
following system repairs. Vertex’s previously disclosed failure in
the renewable diesel feedstock pumping system was successfully
repaired on-time, with facility start-up procedures successfully
completed on May 27th. During the quarter, production volumes of
renewable diesel were steadily increased to expected Phase 1 target
capacity of approximately 8,000 barrels per day.
Feedstock Supply Strategy Advanced. Recent operation and
testing of the renewable diesel facility demonstrated stable
operations at designed rates with yields at or better than targets.
The shorter than anticipated break in period of the renewable
diesel facility, combined with deteriorating economics of refined,
bleached, deodorized (“RBD”) soybean oil feedstock during the
quarter drove an acceleration of the Company’s deployment of its
longer-term feedstock optimization strategy. The Company recently
introduced Distillers Corn Oil or “DCO” into its feedstock blend
last week and has advanced a combination of eight different
feedstock blends through its feedstock approval process over the
last six weeks.
Balance Sheet and Liquidity Update
As of June 30, 2023, Vertex had total debt outstanding of $327.4
million, including lease obligations of $162.1 million. The Company
had total cash and equivalents of $52.1 million including $3.6
million of restricted cash on the balance sheet as of June 30,
2023, for a net debt position of $275.3 million. The ratio of net
debt to trailing twelve month Adjusted EBITDA was 3.6 times as of
June 30, 2023.
On June 12, 2023, the Company successfully executed the exchange
of approximately $79.9 million principal amount of its 6.25% Senior
Secured Convertible due 2027 into 17.2 million shares of common
stock. The Company currently has $15.2 million of remaining
principal outstanding in its 6.25% Senior Secured Convertible
notes.
Management Outlook
All guidance presented below is current as of the time of this
release and is subject to change. All prior financial guidance
should no longer be relied upon.
Third Quarter 2023 Financial and Operating
Outlook:
3Q 2023
Operational:
Low
High
Mobile Refinery Conventional Throughput
Volume (Mbpd)
74.0
77.0
Capacity Utilization
99%
103%
Production Yield Profile
Finished Products1
59%
63%
Intermediate & Other Products2
41%
37%
Financial Guidance:
Direct Operating Expense ($/bbl)
$3.60
$3.80
Capital Expenditures ($/MM)
$20
$25
1.) Finished products include gasoline,
ULSD, and Jet A
2.) Intermediate & Other products
include VGO, LPGs, VTB
CONFERENCE CALL AND WEBCAST DETAILS
A conference call will be held today, August 9, 2023 at 8:30
A.M. Eastern Time to review the Company’s financial results,
discuss recent events and conduct a question-and-answer session. An
audio webcast of the conference call and accompanying presentation
materials will also be available in the “Events and Presentation”
section of Vertex’s website at www.vertexenergy.com. To listen to a
live broadcast, visit the site at least 15 minutes prior to the
scheduled start time in order to register, download, and install
any necessary audio software.
To participate in the live teleconference:
Domestic: 1-877-407-0784 International:
1-201-689-8560
To listen to a replay of the teleconference, which will be
available through August 15, 2023, either go to the Events and
Presentation section of Vertex's website at www.vertexenergy.com,
or call the number below:
Domestic Replay: 1-844-512-2921 International:
1-412-317-6671
Access ID: 13739964
ABOUT VERTEX ENERGY
Vertex Energy is a leading energy transition company that
specializes in producing both renewable and conventional fuels. Our
innovative solutions are designed to enhance the performance of our
customers and partners while also prioritizing sustainability,
safety, and operational excellence. With a commitment to providing
superior products and services, Vertex Energy is dedicated to
shaping the future of the energy industry.
FORWARD-LOOKING STATEMENTS
Certain of the matters discussed in this communication which are
not statements of historical fact constitute forward-looking
statements within the meaning of the securities laws, including the
Private Securities Litigation Reform Act of 1995, that involve a
number of risks and uncertainties. Words such as “strategy,”
“expects,” “continues,” “plans,” “anticipates,” “believes,”
“would,” “will,” “estimates,” “intends,” “projects,” “goals,”
“targets” and other words of similar meaning are intended to
identify forward-looking statements but are not the exclusive means
of identifying these statements. Any statements made in this news
release other than those of historical fact, about an action, event
or development, are forward-looking statements. The important
factors that may cause actual results and outcomes to differ
materially from those contained in such forward-looking statements
include, without limitation, the Company’s projected Outlook for
the third quarter of 2023, as discussed above; the need for
additional capital in the future, including, but not limited to, in
order to complete future capital projects and satisfy liabilities,
the Company’s ability to raise such capital in the future, and the
terms of such funding; the timing of planned capital projects at
the Company’s refinery located in Mobile, Alabama (the “Mobile
Refinery”) and the outcome of such projects; the future production
of the Mobile Refinery, including but not limited to renewable
diesel production; estimated and actual production and costs
associated with the renewable diesel capital project; estimated
revenues over the course of the agreement with Idemitsu;
anticipated and unforeseen events which could reduce future
production at the Mobile Refinery or delay planned and future
capital projects; changes in commodity and credits values; certain
early termination rights associated with third party agreements and
conditions precedent to such agreements; certain mandatory
redemption provisions of the outstanding senior convertible notes,
the conversion rights associated therewith, and dilution caused by
conversions and/or the exchanges of convertible notes; the
Company’s ability to comply with required covenants under
outstanding senior notes and a term loan and pay amounts due under
such senior notes and term loan, including interest and other
amounts due thereunder; the ability of the Company to retain and
hire key personnel; the level of competition in the Company’s
industry and its ability to compete; the Company’s ability to
respond to changes in its industry; the loss of key personnel or
failure to attract, integrate and retain additional personnel; the
Company’s ability to protect intellectual property and not infringe
on others’ intellectual property; the Company’s ability to scale
its business; the Company’s ability to maintain supplier
relationships and obtain adequate supplies of feedstocks; the
Company’s ability to obtain and retain customers; the Company’s
ability to produce products at competitive rates; the Company’s
ability to execute its business strategy in a very competitive
environment; trends in, and the market for, the price of oil and
gas and alternative energy sources; the impact of inflation on
margins and costs; the volatile nature of the prices for oil and
gas caused by supply and demand, including volatility caused by the
ongoing Ukraine/Russia conflict, increased interest rates,
recessions and increased inflation; the Company’s ability to
maintain relationships with partners; the outcome of pending and
potential future litigation, judgments and settlements; rules and
regulations making the Company’s operations more costly or
restrictive; volatility in the market price of compliance credits
(primarily Renewable Identification Numbers (RINs) needed to comply
with the Renewable Fuel Standard (“RFS”)) under renewable and
low-carbon fuel programs and emission credits needed under other
environmental emissions programs, the requirement for the Company
to purchase RINs in the secondary market to the extent it does not
generate sufficient RINs internally, liabilities associated
therewith and the timing, funding and costs of such required
purchases, if any; changes in environmental and other laws and
regulations and risks associated with such laws and regulations;
economic downturns both in the United States and globally,
increases in inflation and interest rates, increased costs of
borrowing associated therewith and potential declines in the
availability of such funding; risk of increased regulation of the
Company’s operations and products; disruptions in the
infrastructure that the Company and its partners rely on;
interruptions at the Company’s facilities; unexpected and expected
changes in the Company’s anticipated capital expenditures resulting
from unforeseen and expected required maintenance, repairs, or
upgrades; the Company’s ability to acquire and construct new
facilities; the Company’s ability to effectively manage growth;
decreases in global demand for, and the price of, oil, due to
inflation, recessions or other reasons, including declines in
economic activity or global conflicts; expected and unexpected
downtime at the Company’s facilities; the Company’s level of
indebtedness, which could affect its ability to fulfill its
obligations, impede the implementation of its strategy, and expose
the Company’s interest rate risk; dependence on third party
transportation services and pipelines; risks related to obtaining
required crude oil supplies, and the costs of such supplies;
counterparty credit and performance risk; unanticipated problems
at, or downtime effecting, the Company’s facilities and those
operated by third parties; risks relating to the Company’s hedging
activities or lack of hedging activities; and risks relating to
planned and future divestitures, asset sales, joint ventures and
acquisitions.
Other important factors that may cause actual results and
outcomes to differ materially from those contained in the
forward-looking statements included in this communication are
described in the Company’s publicly filed reports, including, but
not limited to, the Company’s Annual Report on Form 10-K for the
year ended December 31, 2022, and the Company’s Quarterly Report on
Form 10-Q for the quarter ended June 30, 2023, and future Annual
Reports on Form 10-K and Quarterly Reports on Form 10-Q. These
reports are available at www.sec.gov. The Company cautions that the
foregoing list of important factors is not complete. All subsequent
written and oral forward-looking statements attributable to the
Company or any person acting on behalf of the Company are expressly
qualified in their entirety by the cautionary statements referenced
above. Other unknown or unpredictable factors also could have
material adverse effects on Vertex’s future results. The
forward-looking statements included in this press release are made
only as of the date hereof. Vertex cannot guarantee future results,
levels of activity, performance or achievements. Accordingly, you
should not place undue reliance on these forward-looking
statements. Finally, Vertex undertakes no obligation to update
these statements after the date of this release, except as required
by law, and takes no obligation to update or correct information
prepared by third parties that are not paid for by Vertex. If we
update one or more forward-looking statements, no inference should
be drawn that we will make additional updates with respect to those
or other forward-looking statements.
PROJECTIONS
The financial projections (the “Projections”) included herein
were prepared by Vertex in good faith using assumptions believed to
be reasonable. A significant number of assumptions about the
operations of the business of Vertex were based, in part, on
economic, competitive, and general business conditions prevailing
at the time the Projections were developed. Any future changes in
these conditions, may materially impact the ability of Vertex to
achieve the financial results set forth in the Projections. The
Projections are based on numerous assumptions, including
realization of the operating strategy of Vertex; industry
performance; no material adverse changes in applicable legislation
or regulations, or the administration thereof, or generally
accepted accounting principles; general business and economic
conditions; competition; retention of key management and other key
employees; absence of material contingent or unliquidated
litigation, indemnity, or other claims; minimal changes in current
pricing; static material and equipment pricing; no significant
increases in interest rates or inflation; and other matters, many
of which will be beyond the control of Vertex, and some or all of
which may not materialize. The Projections also assume the
continued uptime of the Company’s facilities at historical levels
and the successful funding of, timely completion of, and successful
outcome of, planned capital projects. Additionally, to the extent
that the assumptions inherent in the Projections are based upon
future business decisions and objectives, they are subject to
change. Although the Projections are presented with numerical
specificity and are based on reasonable expectations developed by
Vertex’s management, the assumptions and estimates underlying the
Projections are subject to significant business, economic, and
competitive uncertainties and contingencies, many of which will be
beyond the control of Vertex. Accordingly, the Projections are only
estimates and are necessarily speculative in nature. It is expected
that some or all of the assumptions in the Projections will not be
realized and that actual results will vary from the Projections.
Such variations may be material and may increase over time. In
light of the foregoing, readers are cautioned not to place undue
reliance on the Projections. The projected financial information
contained herein should not be regarded as a representation or
warranty by Vertex, its management, advisors, or any other person
that the Projections can or will be achieved. Vertex cautions that
the Projections are speculative in nature and based upon subjective
decisions and assumptions. As a result, the Projections should not
be relied on as necessarily predictive of actual future events.
NON-GAAP FINANCIAL MEASURES
In addition to our results calculated under generally accepted
accounting principles in the United States (“GAAP”), in this news
release we also present Adjusted EBITDA, Adjusted Gross Margin,
Fuel Gross Margin, Fuel Gross Margin Per Barrel of Throughput,
Operating Expenses Per Barrel of Throughput, RIN Adjusted Fuel
Gross Margin, RIN Adjusted Fuel Gross Margin Per Barrel of
Throughput, Net Long-Term Debt and Ratio of Net Long-Term Debt
(collectively, the “Non-GAAP Financial Measures”) The Non-GAAP
Financial Measures are “non-GAAP financial measures” presented as
supplemental measures of the Company’s performance. They are not
presented in accordance with GAAP. EBITDA represents net income
before interest, taxes, depreciation and amortization, for
continued and discontinued operations. Adjusted EBITDA represents
net income (loss) from operations plus unrealized gain or losses on
hedging activities, Renewable Fuel Standard (RFS) costs (mainly
related to Renewable Identification Numbers (RINs), and inventory
adjustments, depreciation and amortization, acquisition costs, gain
on change in value of derivative warrant liability, environmental
clean-up, stock-based compensation, (gain) loss on sale of assets,
interest expense, and certain other unusual or non-recurring
charges included in selling, general, and administrative expenses.
Adjusted Gross Margin is defined as gross profit (loss) plus
unrealized gain or losses on hedging activities and inventory
valuation adjustments. Fuel Gross Margin is defined as Adjusted
Gross Margin, plus production costs, operating expenses and
depreciation attributable to cost of revenues and other non-fuel
items included in costs of revenues including realized and
unrealized gain or losses on hedging activities, RFS costs (mainly
related to RINs), inventory valuation adjustments, fuel financing
costs and other revenues and cost of sales items. Fuel Gross Margin
Per Barrel of Throughput is calculated as fuel gross margin divided
by total throughput barrels for the period presented. Operating
Expenses Per Barrel of Throughput is defined as total operating
expenses divided by total barrels of throughput. RIN Adjusted Fuel
Gross Margin is defined as [Fuel Gross Margin minus RIN expense
divided by total barrels of throughput. RIN Adjusted Fuel Gross
Margin Per Barrel of Throughput is calculated as RIN Adjusted Fuel
Gross Margin divided by total throughput barrels for the period
presented. Net Long-Term Debt is long-term debt and lease
obligations, adjusted for unamortized discount and deferred
financing costs, insurance premiums financed, less cash and cash
equivalents and restricted cash. Ratio of Net Long-Term Debt is
defined as Long-Term Debt divided by Adjusted EBITDA.
The Non-GAAP Financial Measures are presented because we believe
they provide additional useful information to investors due to the
various noncash items during the period. We believe that the
Non-GAAP Financial Measures are also frequently used by analysts,
investors and other interested parties to evaluate companies in our
industry. We use the Non-GAAP Financial Measures as supplements to
GAAP measures of performance to evaluate the effectiveness of our
business strategies, to make budgeting decisions, to allocate
resources and to compare our performance relative to our peers.
Additionally, these measures, when used in conjunction with related
GAAP financial measures, provide investors with an additional
financial analytical framework which management uses, in addition
to historical operating results, as the basis for financial,
operational and planning decisions and present measurements that
third parties have indicated are useful in assessing the Company
and its results of operations. The Non-GAAP Financial Measures are
unaudited, and have limitations as analytical tools, and you should
not consider them in isolation, or as a substitute for analysis of
our operating results as reported under GAAP. Some of these
limitations are: the Non-GAAP Financial Measures do not reflect
cash expenditures, or future requirements for capital expenditures,
or contractual commitments; the Non-GAAP Financial Measures do not
reflect changes in, or cash requirements for, capital expenditures
or working capital needs; the Non-GAAP Financial Measures do not
reflect the significant interest expense, or the cash requirements
necessary to service interest or principal payments, on debt or
cash income tax payments; although depreciation and amortization
are noncash charges, the assets being depreciated and amortized
will often have to be replaced in the future, the Non-GAAP
Financial Measures do not reflect any cash requirements for such
replacements; Adjusted EBITDA, Adjusted Gross Margin, Fuel Gross
Margin and RIN Adjusted Fuel Gross Margin represent only a portion
of our total operating results; and other companies in this
industry may calculate the Non-GAAP Financial Measures differently
than we do, limiting their usefulness as a comparative measure. The
Company’s presentation of these measures should not be construed as
an inference that future results will be unaffected by unusual or
nonrecurring items. We compensate for these limitations by
providing a reconciliation of each of these non-GAAP measures to
the most comparable GAAP measure. We encourage investors and others
to review our business, results of operations, and financial
information in their entirety, not to rely on any single financial
measure, and to view these non-GAAP measures in conjunction with
the most directly comparable GAAP financial measure. For more
information on these non-GAAP financial measures, please see the
sections titled “Unaudited Reconciliation of Gross Profit (Loss)
From Continued and Discontinued Operations to Adjusted Gross
Margin, Fuel Gross Margin, Fuel Gross Margin Per Barrel of
Throughput, Operating Expenses Per Barrel of Throughput, RIN
Adjusted Fuel Gross Margin and RIN Adjusted Fuel Gross Margin Per
Barrel of Throughput”, “Unaudited Reconciliation of Adjusted EBITDA
to Net loss from Continued and Discontinued Operations”, and
“Unaudited Reconciliation of Long-Term Debt to Net Long-Term Debt
and Ratio of Net Debt”, at the end of this release.
VERTEX ENERGY, INC. CONSOLIDATED
BALANCE SHEETS (in thousands, except number of shares and
par value) (UNAUDITED)
June 30, 2023
December 31,
2022
ASSETS
Current assets
Cash and cash equivalents
$
48,532
$
141,258
Restricted cash
3,603
4,929
Accounts receivable, net
50,995
34,548
Inventory
215,672
135,473
Prepaid expenses and other current
assets
52,929
36,660
Assets held for sale, current
—
20,560
Total current assets
371,731
373,428
Fixed assets, net
298,112
201,749
Finance lease right-of-use assets
66,301
44,081
Operating lease right-of use assets
92,502
53,557
Intangible assets, net
12,241
11,827
Deferred taxes assets
10,975
2,498
Other assets
3,338
2,245
TOTAL ASSETS
$
855,200
$
689,385
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Accounts payable
$
41,373
$
20,997
Accrued expenses
87,642
81,711
Finance lease liability-current
2,320
1,363
Operating lease liability-current
25,588
9,012
Current portion of long-term debt, net
18,245
13,911
Obligations under inventory financing
agreements, net
162,096
117,939
Derivative commodity liability
3,357
242
Liabilities held for sale, current
—
3,424
Total current liabilities
340,621
248,599
Long-term debt, net
123,653
170,010
Finance lease liability-long-term
67,290
45,164
Operating lease liability-long-term
66,914
44,545
Deferred tax liabilities
—
—
Derivative warrant liability
13,855
14,270
Other liabilities
1,377
1,377
Total liabilities
613,710
523,965
COMMITMENTS AND CONTINGENCIES (Note
4)
—
—
STOCKHOLDERS' EQUITY
Common stock, $0.001 par value per share;
750,000,000 shares authorized; 93,236,563 and 75,668,826 shares
issued and outstanding at June 30, 2023 and December 31, 2022,
respectively.
93
76
Additional paid-in capital
381,776
279,552
Accumulated deficit
(143,431
)
(115,893
)
Total Vertex Energy, Inc. stockholders'
equity
238,438
163,735
Non-controlling interest
3,052
1,685
Total equity
241,490
165,420
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
$
855,200
$
689,385
VERTEX ENERGY, INC. CONSOLIDATED
STATEMENTS OF OPERATIONS (in thousands, except per share
amounts) (UNAUDITED)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Revenues
$
734,893
$
1,029,369
$
1,426,035
$
1,103,906
Cost of revenues (exclusive of
depreciation and amortization shown separately below)
729,649
1,007,143
1,349,001
1,068,133
Depreciation and amortization attributable
to costs of revenues
6,630
4,063
10,967
5,090
Gross profit (loss)
(1,386
)
18,163
66,067
30,683
Operating expenses:
Selling, general and administrative
expenses (exclusive of depreciation and amortization shown
separately below)
42,636
40,748
84,578
52,897
Depreciation and amortization attributable
to operating expenses
1,028
1,127
2,044
1,536
Total operating expenses
43,664
41,875
86,622
54,433
Loss from operations
(45,050
)
(23,712
)
(20,555
)
(23,750
)
Other income (expense):
Other income (loss)
(496
)
171
1,156
643
Gain (loss) on change in value of
derivative warrant liability
9,600
(945
)
415
(4,524
)
Interest expense
(77,536
)
(47,712
)
(90,013
)
(51,933
)
Total other expense
(68,432
)
(48,486
)
(88,442
)
(55,814
)
Loss from continuing operations before
income tax
(113,482
)
(72,198
)
(108,997
)
(79,564
)
Income tax benefit (expense)
28,688
—
27,676
—
Loss from continuing operations
(84,794
)
(72,198
)
(81,321
)
(79,564
)
Income from discontinued operations, net
of tax (see note 23)
3,340
8,416
53,680
14,973
Net loss
(81,454
)
(63,782
)
(27,641
)
(64,591
)
Net income (loss) attributable to
non-controlling interest and redeemable non-controlling interest
from continuing operations
(53
)
137
(103
)
64
Net income attributable to non-controlling
interest and redeemable non-controlling interest from discontinued
operations
—
3,050
—
6,862
Net loss attributable to Vertex Energy,
Inc.
(81,401
)
(66,969
)
(27,538
)
(71,517
)
Accretion of redeemable noncontrolling
interest to redemption value from continued operations
—
(7
)
—
(428
)
Net loss attributable to common
stockholders from continuing operations
(84,741
)
(72,342
)
(81,218
)
(80,056
)
Net income attributable to common
stockholders from discontinued operations, net of tax
3,340
5,366
53,680
8,111
Net loss attributable to common
shareholders
$
(81,401
)
$
(66,976
)
$
(27,538
)
$
(71,945
)
Basic loss per common share
Continuing operations
$
(1.07
)
$
(1.07
)
$
(1.05
)
$
(1.22
)
Discontinued operations, net of tax
0.04
0.08
0.69
0.12
Basic loss per common share
$
(1.03
)
$
(0.99
)
$
(0.36
)
$
(1.10
)
Shares used in computing earnings per
share
Basic
79,519
67,923
77,615
65,660
Diluted
79,519
67,923
77,615
65,660
VERTEX ENERGY, INC. CONSOLIDATED
STATEMENTS OF STOCKHOLDERS' EQUITY (in thousands, except par
value) (UNAUDITED)
Six Months Ended June 30,
2023
Common Stock
Series A Preferred
Shares
$0.001 Par
Shares
$0.001 Par
Additional Paid-In
Capital
Retained Earnings
Non-controlling
Interest
Total Equity
Balance on January 1, 2023
75,669
$
76
—
$
—
$
279,552
$
(115,893
)
$
1,685
$
165,420
Exercise of options
166
—
—
—
209
—
—
209
Stock based compensation expense
—
—
—
—
365
—
—
365
Non-controlling shareholder
contribution
—
—
—
—
—
—
980
980
Net income (loss)
—
—
—
—
—
53,863
(50
)
53,813
Balance on March 31, 2023
75,835
76
—
—
280,126
(62,030
)
2,615
220,787
Exercise of options
195
—
—
—
169
—
—
169
Stock based compensation expense
—
—
—
—
368
—
—
368
Senior Note Converted
17,207
17
—
—
101,113
—
—
101,130
Non-controlling shareholder
contribution
—
—
—
—
—
—
490
490
Net loss
—
—
—
—
—
(81,401
)
(53
)
(81,454
)
Balance on June 30, 2023
93,237
$
93
—
$
—
$
381,776
$
(143,431
)
$
3,052
$
241,490
Six Months Ended June 30,
2022
Common Stock
Series A Preferred
Shares
$0.001 Par
Shares
$0.001 Par
Additional Paid-In
Capital
Retained Earnings
Non-controlling
Interest
Total Equity
Balance on January 1, 2022
63,288
$
63
386
$
—
$
138,620
$
(110,614
)
$
1,997
$
30,066
Exercise of options
60
—
—
—
76
—
—
76
Exercise of warrants
1,113
1
—
—
(1
)
—
—
—
Stock based compensation expense
—
—
—
—
250
—
—
250
Conversion of Series A Preferred stock to
common
5
—
(5
)
—
—
—
—
—
Equity component of the convertible note
issuance, net
—
—
—
—
78,789
—
—
78,789
Accretion of redeemable non-controlling
interest to redemption value
—
—
—
—
—
(422
)
—
(422
)
Net income (loss)
—
—
—
—
—
(4,547
)
3,739
(808
)
Less: amount attributable to redeemable
non-controlling interest
—
—
—
—
—
—
(3,769
)
(3,769
)
Balance on March 31, 2022
64,466
64
381
—
217,734
(115,583
)
1,967
104,182
Exercise of options to common
498
1
—
—
553
—
—
554
Exercise of options to common-
unissued
—
—
—
—
3
—
—
3
Distribution to non-controlling
shareholder
—
—
—
—
—
—
(380
)
(380
)
Adjustment of redeemable non-controlling
interest
—
—
—
—
29
(29
)
—
—
Conversion of Convertible Senior Notes to
common
10,164
10
—
—
59,812
—
—
59,822
Share based compensation expense
—
—
—
—
324
—
—
324
Conversion of Series A Preferred stock to
common
381
1
(381
)
—
—
—
—
1
Accretion of redeemable non-controlling
interest to redemption value
—
—
—
—
—
(6
)
—
(6
)
Net income (loss)
—
—
—
—
—
(66,970
)
3,188
(63,782
)
Less: amount attributable to redeemable
non-controlling interest
—
—
—
—
—
—
(3,023
)
(3,023
)
Balance on June 30, 2022
75,509
$
76
—
$
—
$
278,455
$
(182,588
)
$
1,752
$
97,695
VERTEX ENERGY, INC. CONSOLIDATED
STATEMENTS OF CASH FLOWS (in thousands)
(UNAUDITED)
Six Months Ended June
30,
2023
2022
Cash flows from operating activities
Net loss
$
(27,641
)
$
(64,591
)
Income from discontinued operations, net
of tax
53,680
14,973
Loss from continuing operations
(81,321
)
(79,564
)
Adjustments to reconcile net loss from
continuing operations to cash
used in operating activities
Stock based compensation expense
733
574
Depreciation and amortization
13,011
6,626
Deferred income tax benefit
(27,676
)
—
Gain on sale of assets
(2
)
(83
)
Provision for environment clean up
—
1,429
Increase in allowance for bad debt
93
432
(Decrease) increase in fair value of
derivative warrant liability
(415
)
4,524
Loss on commodity derivative contracts
2,123
98,274
Net cash settlements on commodity
derivatives
1,269
(70,951
)
Amortization of debt discount and deferred
costs
70,948
40,001
Changes in operating assets and
liabilities
Accounts receivable and other
receivables
(18,589
)
(89,207
)
Inventory
(80,199
)
(65,679
)
Prepaid expenses and other current
assets
(16,546
)
(18,613
)
Accounts payable
20,376
44,561
Accrued expenses
5,932
27,171
Other assets
(1,090
)
29
Net cash used in operating activities from
continuing operations
(111,353
)
(100,476
)
Cash flows from investing activities
Purchase of intangible assets
(2,500
)
(106
)
Investment in Mobile Refinery assets
—
(227,525
)
Purchase of fixed assets
(105,344
)
(2,150
)
Proceeds from sale of discontinued
operation
92,034
—
Proceeds from sale of fixed assets
5
157
Net cash used in investing activities from
continuing operations
(15,805
)
(229,624
)
Cash flows from financing activities
Payments on finance leases
(908
)
(402
)
Proceeds from exercise of options and
warrants to common stock
378
633
Distributions to noncontrolling
interest
—
(380
)
Contributions received from noncontrolling
interest
1,470
—
Net change on inventory financing
agreements
43,657
172,607
Redemption of noncontrolling interest
—
(50,666
)
Proceeds from note payable
13,081
165,718
Payments on note payable
(24,422
)
(7,716
)
Net cash provided by financing activities
from continuing operations
33,256
279,794
Discontinued operations:
Net cash provided by (used in) operating
activities
(150
)
12,476
Net cash used in investing activities
—
(783
)
Net cash provided by (used in)
discontinued operations
(150
)
11,693
Net decrease in cash, cash equivalents and
restricted cash
(94,052
)
(38,613
)
Cash, cash equivalents, and restricted
cash at beginning of the period
146,187
136,627
Cash, cash equivalents, and restricted
cash at end of period
$
52,135
$
98,014
VERTEX ENERGY, INC. CONSOLIDATED
STATEMENTS OF CASH FLOWS (in thousands)
(UNAUDITED) (Continued)
The following table provides a reconciliation of cash and cash
equivalents and restricted cash reported within the consolidated
balance sheets to the same amounts shown in the consolidated
statements of cash flows (in thousands).
Six Months Ended
June 30, 2023
June 30, 2022
Cash and cash equivalents
$
48,532
$
97,914
Restricted cash
3,603
100
Cash and cash equivalents and restricted
cash as shown in the consolidated statements of cash flows
$
52,135
$
98,014
SUPPLEMENTAL INFORMATION
Cash paid for interest
$
24,755
$
51,950
Cash paid for taxes
$
—
$
—
NON-CASH INVESTING AND FINANCING
TRANSACTIONS
Equity component of the convertible note
issuance
$
—
$
78,789
ROU assets obtained from new finance lease
obligation
$
23,990
$
45,096
Exchange of Convertible Senior Notes to
common stock
$
79,948
$
59,822
ROU assets obtained from new operating
lease obligation
$
38,945
$
—
Accretion of redeemable non-controlling
interest to redemption value
$
—
$
428
Unaudited segment information for the three and six months ended
June 30, 2023 and 2022 is as follows (in thousands):
Three Months Ended June 30,
2023
Refining &
Marketing
Black Oil &
Recovery
Corporate and
Eliminations
Total
Revenues:
Refined products
$
492,109
$
21,797
$
149
$
514,055
Re-refined products
215,508
3,536
(2,560
)
216,484
Services
3,802
552
—
4,354
Total revenues
711,419
25,885
(2,411
)
734,893
Cost of revenues (exclusive of
depreciation and amortization shown separately below)
710,958
23,263
(4,572
)
729,649
Depreciation and amortization attributable
to costs of revenues
5,568
1,062
—
6,630
Gross profit (loss)
(5,107
)
1,560
2,161
(1,386
)
Selling, general and administrative
expenses
32,969
4,504
5,163
42,636
Depreciation and amortization attributable
to operating expenses
822
38
168
1,028
Loss from operations
$
(38,898
)
$
(2,982
)
$
(3,170
)
$
(45,050
)
Capital expenditures
$
27,762
$
2,827
$
—
$
30,589
Three Months Ended June 30,
2022
Refining &
Marketing
Black Oil &
Recovery
Corporate and
Eliminations
Total
Revenues:
Refined products
$
719,607
$
56,520
$
—
$
776,127
Re-refined products
244,476
5,956
—
250,432
Services
2,307
503
—
2,810
Total revenues
966,390
62,979
—
1,029,369
Cost of revenues (exclusive of
depreciation and amortization shown separately below)
959,684
47,459
—
1,007,143
Depreciation and amortization attributable
to costs of revenues
3,105
958
—
4,063
Gross profit
3,601
14,562
—
18,163
Selling, general and administrative
expenses
23,679
4,199
12,870
40,748
Depreciation and amortization attributable
to operating expenses
829
46
252
1,127
Income (loss) from operations
$
(20,907
)
$
10,317
$
(13,122
)
$
(23,712
)
Capital expenditures
$
1,568
$
194
$
—
$
1,762
Six Months Ended June 30,
2023
Refining &
Marketing
Black Oil &
Recovery
Corporate and
Eliminations
Total
Revenues:
Refined products
$
964,661
$
51,220
$
(570
)
$
1,015,311
Re-refined products
400,352
7,947
(4,573
)
403,726
Services
5,734
1,264
—
6,998
Total revenues
1,370,747
60,431
(5,143
)
1,426,035
Cost of revenues (exclusive of
depreciation and amortization shown separately below)
1,300,770
53,681
(5,450
)
1,349,001
Depreciation and amortization attributable
to costs of revenues
8,862
2,105
—
10,967
Gross profit
61,115
4,645
307
66,067
Selling, general and administrative
expenses
59,455
9,303
15,820
84,578
Depreciation and amortization attributable
to operating expenses
1,630
76
338
2,044
Income (loss) from operations
$
30
$
(4,734
)
$
(15,851
)
$
(20,555
)
Capital expenditures
$
97,670
$
7,674
$
—
$
105,344
Six Months Ended June 30,
2022
Refining &
Marketing
Black Oil &
Recovery
Corporate and
Eliminations
Total
Revenues:
Refined products
$
749,063
$
91,471
$
—
$
840,534
Re-refined products
249,739
10,272
—
260,011
Services
2,307
1,054
—
3,361
Total revenues
1,001,109
102,797
—
1,103,906
Cost of revenues (exclusive of
depreciation and amortization shown separately below)
992,770
75,363
—
1,068,133
Depreciation and amortization attributable
to costs of revenues
3,228
1,862
—
5,090
Gross profit
5,111
25,572
—
30,683
Selling, general and administrative
expenses
24,804
8,322
19,771
52,897
Depreciation and amortization attributable
to operating expenses
934
104
498
1,536
Income (loss) from operations
$
(20,627
)
$
17,146
$
(20,269
)
$
(23,750
)
Capital expenditures
$
1,956
$
194
$
—
$
2,150
The following summarized unaudited financial information has
been segregated from continuing operations and reported as
discontinued operations for the three and six months ended June 30,
2023, and 2022 (in thousands):
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Revenues
$
—
$
23,832
$
7,366
$
42,759
Cost of revenues (exclusive of
depreciation shown separately below)
—
12,735
4,589
22,918
Depreciation and amortization attributable
to costs of revenues
—
391
124
782
Gross profit
—
10,706
2,653
19,059
Operating expenses:
Selling, general and administrative
expenses (exclusive of depreciation shown separately below)
—
2,220
632
3,938
Depreciation and amortization expense
attributable to operating expenses
—
62
21
125
Total operating expenses
—
2,282
653
4,063
Income from operations
—
8,424
2,000
14,996
Other income (expense)
Interest expense
—
(8
)
—
(23
)
Total other expense
—
(8
)
—
(23
)
Income before income tax
—
8,416
2,000
14,973
Income tax expense
—
—
(528
)
—
Gain on sale of discontinued operations,
net of $1,453 and $18,671 of tax for three and six months ended
June 30, 2023
3,340
—
52,208
—
Income from discontinued operations, net
of tax
$
3,340
$
8,416
$
53,680
$
14,973
Unaudited Reconciliation of Gross Profit
(Loss) From Continued and Discontinued Operations to Adjusted Gross
Margin, Fuel Gross Margin, Fuel Gross Margin Per Barrel of
Throughput, Operating Expenses Per Barrel of Throughput, RIN
Adjusted Fuel Gross Margin and RIN Adjusted Fuel Gross Margin Per
Barrel of Throughput
Three Months Ended March 31, 2023 In thousands
Mobile
Refinery Gross profit
$
65,470
Unrealized (gain) loss on hedging activities
$
(570
)
Inventory valuation adjustments
(1,532
)
Adjusted gross margin
$
63,368
Variable production costs attributable to cost of revenues
21,252
Depreciation and amortization attributable to cost of revenues
3,144
RINs
16,115
Realized (gain) loss on hedging activities
(439
)
Financing costs
2,295
Other revenues
(1,933
)
Fuel gross margin
$
103,802
Throughput (bpd)
71,328
Fuel gross margin per barrel of throughput
$
16.17
Adjusted gross margin per barrel of throughput
$
9.87
Total Opex
$
26,486
Variable production costs per barrel of throughput
$
3.31
Operating expenses per barrel of throughput
$
3.84
RIN Adjusted Fuel Gross Margin
$
87,700
RIN Adjusted Fuel Gross Margin per barrel of throughput
$
13.66
Three Months Ended June 30, 2023 In thousands
Mobile
Refinery Gross profit
$
(6,462
)
Unrealized (gain) loss on hedging activities
$
3,762
Inventory valuation adjustments
(501
)
Adjusted gross margin
$
(3,201
)
Variable production costs attributable to cost of revenues
28,763
Depreciation and amortization attributable to cost of revenues
5,369
RINs
25,410
Realized (gain) loss on hedging activities
138
Financing costs
(29
)
Other revenues
(3,800
)
Fuel gross margin
$
52,650
Throughput (bpd)
78,820
Fuel gross margin per barrel of throughput
$
7.34
Adjusted gross margin per barrel of throughput
$
(0.45
)
Total Opex
$
30.4
Variable production costs per barrel of throughput
$
4.01
Operating expenses per barrel of throughput
$
4.23
RIN Adjusted Fuel Gross Margin
$
27.3
RIN Adjusted Fuel Gross Margin per barrel of throughput
$
3.68
Six Months Ended June 30, 2023 In thousands
Mobile
Refinery Gross profit
$
59,008
Unrealized (gain) loss on hedging activities
$
3,192
Inventory valuation adjustments
(2,033
)
Adjusted gross margin
$
60,167
Variable production costs attributable to cost of revenues
50,015
Depreciation and amortization attributable to cost of revenues
8,513
RINs
41,525
Realized (gain) loss on hedging activities
(301
)
Financing costs
2,266
Other revenues
(5,733
)
Fuel gross margin
$
156,452
Throughput (bpd)
75,095
Fuel gross margin per barrel of throughput
$
11.51
Adjusted gross margin per barrel of throughput
$
4.43
Total Opex
$
26,486
Variable production costs per barrel of throughput
$
3.68
Operating expenses per barrel of throughput
$
4.05
RIN Adjusted Fuel Gross Margin
$
115,000
RIN Adjusted Fuel Gross Margin per barrel of throughput
$
8.46
Unaudited Reconciliation of Adjusted EBITDA to Net loss from
Continued and Discontinued Operations
In thousands
Three Months Ended Six Months Ended
Twelve Months Ended June 30, 2023 June 30,
2022 June 30, 2023 June 30, 2022 June 30,
2023 June 30, 2022 Net income (loss)
$
(81,454
)
$
(63,781
)
$
(27,641
)
$
(64,590
)
$
38,947
$
(59,260
)
Depreciation and amortization
7,658
5,644
13,156
7,534
24,541
11,367
Income tax expense (benefit)
(27,236
)
-
(8,477
)
-
(10,966
)
-
Interest expense
77,536
47,719
90,013
51,954
118,008
55,351
EBITDA
$
(23,496
)
$
(10,418
)
$
67,051
$
(5,102
)
$
170,530
$
7,458
Unrealized (gain) loss on hedging activities
3,370
46,901
3,115
46,633
(43,664
)
46,528
Inventory valuation adjustments
(501
)
23,180
(2,033
)
23,180
25,553
23,180
Gain on change in value of derivative warrant liability
(9,600
)
945
(415
)
4,524
(12,760
)
(3,078
)
Stock-based compensation
368
324.00
733.00
574
1,733
1,081
(Gain) loss on sale of assets
(4,291
)
0
(72,032
)
(415
)
(71,109
)
(625
)
Acquisition costs
-
9,078
4,308.00
13,638
7,197
17,203
Enviromental clean-up
-
1,428
-
1,428
-
1,428
Other
-
(147
)
-
(147
)
(3
)
2,106
Adjusted EBITDA
$
(34,150
)
$
71,291
$
727
$
84,313
$
77,477
$
95,281
Three Months Ended June 30, 2023 In thousands
Mobile
Refinery Legacy Refining & Marketing Total
Refining & Marketing Black Oil and Recovery
Corporate Consolidated Net income (loss)
$
(42,116
)
$
(1,312
)
$
(43,428
)
$
(3,667
)
$
(34,359
)
$
(81,454
)
Depreciation and amortization
6,119
272
6,391
1,100
167
7,658
Income tax expense (benefit)
-
-
-
-
(27,236
)
(27,236
)
Interest expense
4,529
-
4,529
28
72,979
77,536
EBITDA
$
(31,468
)
$
(1,040
)
$
(32,508
)
$
(2,539
)
$
11,551
$
(23,496
)
Unrealized (gain) loss on hedging activities
3,762
25
3,787
(417
)
-
3,370
Inventory valuation adjustments
(501
)
-
(501
)
-
-
(501
)
Gain on change in value of derivative warrant liability
-
-
-
-
(9,600
)
(9,600
)
Stock-based compensation
-
-
-
-
368
368
(Gain) loss on sale of assets
-
-
-
499
(4,790
)
(4,291
)
Acquisition costs
-
-
-
-
-
-
Adjusted EBITDA
$
(28,207
)
$
(1,015
)
$
(29,222
)
$
(2,457
)
$
(2,471
)
$
(34,150
)
Six Months Ended June 30, 2023 In thousands
Mobile
Refinery Legacy Refining & Marketing Total
Refining & Marketing Black Oil and Recovery
Corporate Consolidated Net income (loss)
$
(5,939
)
$
(2,437
)
$
(8,376
)
$
(1,663
)
$
(17,602
)
$
(27,641
)
Depreciation and amortization
9,999
494
10,493
2,326
337
13,156
Income tax expense (benefit)
-
-
-
-
(8,477
)
(8,477
)
Interest expense
8,405
-
8,405
85
81,523
90,013
EBITDA
$
12,465
$
(1,943
)
$
10,522
$
748
$
55,781
$
67,051
Unrealized (gain) loss on hedging activities
3,192
(42
)
3,150
(35
)
-
3,115
Inventory valuation adjustments
(2,033
)
-
(2,033
)
-
-
(2,033
)
Gain on change in value of derivative warrant liability
-
-
-
-
(415
)
(415
)
Stock-based compensation
-
-
-
-
733
733
(Gain) loss on sale of assets
-
-
-
(1,156
)
(70,876
)
(72,032
)
Acquisition costs
-
-
-
-
4,308
4,308
Adjusted EBITDA
$
13,624
$
(1,985
)
$
11,639
$
(443
)
$
(10,469
)
$
727
Three Months Ended June 30, 2022 In thousands
Mobile
Refinery Legacy Refining & Marketing Total
Refining & Marketing Black Oil and Recovery
Corporate Consolidated Net income (loss)
$
(23,961
)
$
10
$
(23,951
)
$
(39,830
)
$
-
$
(63,781
)
Depreciation and amortization
3,722
23
3,745
1,899
-
5,644
Income tax expense (benefit)
-
-
-
-
-
-
Interest expense
3,250
-
3,250
44,469
-
47,719
EBITDA
$
(16,989
)
$
33
$
(16,956
)
$
6,538
$
-
$
(10,418
)
Unrealized (gain) loss on hedging activities
46,901
-
46,901
-
-
46,901
Inventory valuation adjustments
23,180
-
23,180
-
-
23,180
Gain on change in value of derivative warrant liability
-
-
-
945.00
-
945
Stock-based compensation
-
-
-
324.00
-
324
(Gain) loss on sale of assets
-
-
-
-
-
Acquisition costs
9,078
-
9,078
-
-
9,078
Enviromental clean-up
1,428
-
1,428
-
-
1,428
Other
(19
)
-
(19
)
(128.00
)
-
(147
)
Adjusted EBITDA
$
63,579
$
33
$
63,612
$
7,679
$
-
$
71,291
Six Months Ended June 30, 2022 In thousands
Mobile
Refinery Legacy Refining & Marketing Total
Refining & Marketing Black Oil and Recovery
Corporate Consolidated Net income (loss)
$
(23,961
)
$
290
$
(23,671
)
$
(26,015
)
$
(14,904
)
$
(64,590
)
Depreciation and amortization
3,722
251
3,973
3,315
246
7,534
Income tax expense (benefit)
-
-
-
-
-
-
Interest expense
3,250
-
3,250
44,469
4,235
51,954
EBITDA
$
(16,989
)
$
541
$
(16,448
)
$
21,769
$
(10,423
)
$
(5,102
)
Unrealized (gain) loss on hedging activities
46,901
-
46,901
(268.00
)
-
46,633
Inventory valuation adjustments
23,180
-
23,180
-
-
23,180
Gain on change in value of derivative warrant liability
-
-
-
945.00
3,579
4,524
Stock-based compensation
-
-
-
324.00
250
574
(Gain) loss on sale of assets
-
-
-
(415
)
-
(415
)
Acquisition costs
9,078
-
9,078
-
4,560
13,638
Enviromental clean-up
1,428
-
1,428
-
-
1,428
Other
(19
)
-
(19
)
(128.00
)
-
(147
)
Adjusted EBITDA
$
63,579
$
541
$
64,120
$
22,227
$
(2,034
)
$
84,313
Unaudited Reconciliation of Long-Term Debt
to Net Long-Term Debt and Ratio of Net Debt
In thousands
As of June 30, 2023 June 30, 2022
December 31, 2022 Long-Term Debt: Senior Convertible
Note
$
15,230
$
41,543
$
95,178
Term Loan 2025
150,075
165,000
165,000
Finance lease liability long-term
67,290
44,640
45,164
Finance lease liability short-term
2,320
652
1,363
Operating lease liability long-term
66,914
3,816
44,545
Operating lease liability short-term
25,588
953
9,012
Long-Term Debt and Lease Obligations
$
327,417
$
256,604
$
360,262
Unamortized discount and deferred financing costs
(33,402
)
(37,035
)
(81,918
)
Insurance premiums financed
9,995
9,236
5,602
Long-Term Debt and Lease Obligations per Balance Sheet
$
304,010
$
228,805
$
283,946
Cash and Cash Equivalents
(48,532
)
(97,914
)
(141,248
)
Restricted Cash
(3,603
)
(100
)
(4,929
)
Total Cash and Cash Equivalents
$
(52,135
)
$
(98,014
)
$
(146,177
)
Net Long-Term Debt
$
275,282
$
158,590
$
214,085
Adjusted EBITDA
$
77,477
$
95,280
$
161,000
Ratio of Net Debt 3.6x 1.7x 1.3x
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230809443176/en/
IR@vertexenergy.com 203-682-8284
Grafico Azioni Vertex Energy (NASDAQ:VTNR)
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Grafico Azioni Vertex Energy (NASDAQ:VTNR)
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