Vertex Energy, Inc. (NASDAQ:VTNR) ("Vertex" or the "Company"), a
leading specialty refiner and marketer of high-quality refined
products and renewable fuels, today announced its operational and
financial results for the second quarter of 2024. The Company also
updated its progress in the optimization of its hydrocracking
capacity between conventional production and renewables
production.
The Company will host a conference call to discuss second
quarter 2024 results today, at 9:00 A.M. Eastern Time. Details
regarding the conference call are included at the end of this
release.
Highlights for the second quarter of 2024 and through the date
of this press release include:
- Secured new $15 million and $20 million loans, as previously
disclosed, enhancing the Company’s liquidity;
- Modified certain terms and conditions of the current term loan
agreement and appointed Seth Bullock as Chief Restructuring
Officer;
- Continued safe operation of the Company’s Mobile, Alabama
refinery (the “Mobile Refinery”) with second quarter 2024
conventional throughput of 67,758 barrels per day (bpd);
- Reported net loss attributable to the Company of ($53.8)
million, or ($0.58) per fully-diluted share;
- Recorded Adjusted EBITDA of ($22.4) million driven by a 28%
decrease in crack spreads compared to the first quarter of
2024;
- Decreased selling, general and administrative expense by 6%
compared to the first quarter of 2024 and by 12% compared to the
second quarter of 2023; and
- Completed running all renewable feedstock and began optimizing
the Mobile Refinery hydrocracker capacity from renewable diesel to
conventional fuels with expected contribution in Q4 2024.
Note: Schedules reconciling the Company’s generally accepted
accounting principles in the United States (“GAAP”) and non-GAAP
financial results, including Adjusted EBITDA and certain key
performance indicators, are included later in this release (see
also “Non-GAAP Financial Measures and Key Performance Indicators”,
below).
Mr. Benjamin P. Cowart, Vertex’s Chief Executive Officer,
stated, “We continued to demonstrate operational reliability for
conventional refining and overall continued strong performance in
safety. We saw a difficult crack spread environment driven by a
weakening in gasoline and diesel demand in the second quarter that
drove our Adjusted EBITDA lower. Consistent with the previously
announced pause and pivot strategy, Vertex successfully processed
the remaining inventories of renewable feedstock and safely
decommissioned the hydrotreater out of renewable service. The
Company also continued to manage expenses, seeing moderate
reductions in capital and fixed costs across the business.”
“Given continued near-term EBITDA and liquidity constraints, the
Company continues its pursuit of strategic pathways, considering
alternatives and exploring financing pathways to maximize value.
This includes working with our lenders to secure additional $15 and
$20 million loans in June and July, as well as naming Seth Bullock
as our Chief Restructuring Officer. Seth has significant experience
in the industry and understands Vertex’s operational and financial
capabilities very well. Seth is being brought in to assist Vertex
in managing through a difficult macro-economic environment and
providing additional expertise in liquidity management and
performance improvement. We believe that continued support from our
lenders is key to executing our strategic priorities which are
focused on managing our liquidity position, reducing our operating
costs, and improving margins.”
Mr. Cowart concluded, “We are focused on navigating through the
recent lower crack spreads and continue to believe that the
decision and execution to convert the hydrocracking unit to
conventional fuels will help us toward accomplishing our strategic
priorities for the second half of 2024 and into 2025.”
MOBILE REFINERY OPERATIONS
Total conventional throughput at the Mobile Refinery was 67,758
bpd in the second quarter of 2024. Total production of finished
high-value, light products, such as gasoline, diesel, and jet fuel,
represented approximately 64% of total production in the second
quarter of 2024, flat with the first quarter of 2024, and in line
with management’s original expectations, reflecting a continued
solid yield at the Mobile conventional refining facility.
The Mobile Refinery’s conventional operations generated a gross
profit of $6.4 million and $35.0 million of fuel gross margin (a
key performance indicator (KPI) discussed below) or $5.67 per
barrel during the second quarter of 2024, versus generating a gross
profit of $37.5 million, and fuel gross margin of $73.6 million, or
$12.63 per barrel in the first quarter of 2024. The decline in
profit and margin was driven by a 28% decrease in crack spreads
compared to the first quarter of 2024.
Total renewable throughput at the Mobile Renewable Diesel
facility was 3,092 bpd in the second quarter of 2024. Total
production of renewable diesel was 3,082 bpd reflecting a product
yield of 99.7%.
The Mobile Renewable Diesel facility operations generated a
gross loss of $(11.8) million and $4.5 million of fuel gross margin
(a KPI discussed below) or $16.08 per barrel during the second
quarter of 2024.
Renewable Business Pause and Pivot
As previously announced, Vertex is pausing renewable fuels
production and redirecting the hydrocracking unit to conventional
fuels and products. The Company had a previously planned catalyst
and maintenance turnaround scheduled for 2024. It will use that
planned turnaround to load conventional catalyst and bring the unit
out of turnaround in conventional service. In addition, the total
cost of about $10 million was previously budgeted as part of the
planned catalyst and maintenance turnaround and does not represent
a material change to our forecasted capital spend.
The Company has ceased renewable production and is on-schedule
for the conversion of its Hydrocracker back to conventional
service. This focus on the conventional business seeks to capture
available margins in a more established market with an on-stream
target of the fourth quarter of 2024.
Second Quarter 2024 Mobile Refinery Results
Summary ($/millions unless otherwise noted)
Conventional Fuels Refinery
1Q24
2Q24
2024 YTD
Total Throughput (bpd)
64,065
67,758
65,911
Total Throughput (MMbbl)
5.83
6.17
12.00
Conventional Facility Capacity
Utilization1 (%)
85.4%
90.3%
87.88%
Direct Opex Per Barrel ($/bbl)
$2.75
$2.59
$2.67
Fuel Gross Margin ($/MM)
$73.6
$35.0
$108.60
Fuel Gross Margin Per Barrel ($/bbl)
$12.63
$5.67
$9.06
Production
Yield
Gasoline (bpd)
14,678
15,642
15,160
% Production
22.9%
22.6%
22.7%
ULSD (bpd)
13,441
14,174
13,808
% Production
21.0%
20.4%
20.7%
Jet (bpd)
12,595
14,848
13,722
% Production
19.6%
21.4%
20.6%
Total Finished Fuel Products (bpd)
40,714
44,664
42,690
% Production
63.5%
64.4%
64.0%
Other2 (bpd)
23,428
24,683
24,056
% Production
36.5%
35.6%
36.0%
Total Production (bpd)
64,142
69,347
66,746
Total Production (MMbbl)
5.84
6.31
12.15
Renewable Fuels Refinery
1Q24
2Q24
2024 YTD
Total Renewable Throughput (bpd)
4,090
3,092
3,591
Total Renewable Throughput (MMbbl)
0.37
0.28
0.65
Renewable Diesel Facility Capacity
Utilization3 (%)
51.1%
38.7%
44.9%
Direct Opex Per Barrel ($/bbl)
$25.20
$31.75
$28.03
Renewable Fuel Gross Margin
$3.8
$4.5
$8.4
Renewable Fuel Gross Margin Per Barrel
($/bbl)
$10.29
16.08
$12.78
Renewable Diesel Production (bpd)
4,003
3,082
3,543
Renewable Diesel Production (MMbbl)
0.36
0.28
0.64
Renewable Diesel Production Yield (%)
97.9%
99.7%
98.7%
1) Assumes 75,000 barrels per day of
conventional operational capacity 2) Other includes naphtha,
intermediates, and LNG 3) Assumes 8,000 barrels per day of
renewable fuels operational capacity
Second Quarter 2024 Financial Update
Vertex reported second quarter 2024 net loss attributable to the
Company of ($53.8) million, or ($0.58) per fully-diluted share,
versus net loss attributable to the Company of ($17.7) million, or
($0.19) per fully-diluted share for the first quarter of 2024.
Adjusted EBITDA was $(22.4) million for the second quarter of 2024,
compared to Adjusted EBITDA of $18.6 million in the first quarter
of 2024. The reduction in quarter-over-quarter results was
primarily driven by decreased crack spread pricing across all
products.
Balance Sheet and Liquidity Update
As of June 30, 2024, Vertex had total debt outstanding of $303.8
million, including $15.2 million in 6.25% Senior Convertible Notes,
$207.2 million outstanding on the Company’s Term Loan, finance
lease obligations of $67.5 million, and $13.9 million in other
obligations. The Company had total cash and cash equivalents of
$18.9 million, including $0.1 million of restricted cash on the
balance sheet as of June 30, 2024, for a net debt position of
$284.9 million.
As previously disclosed, on July 24, 2024 the Company reached an
agreement with its senior lenders to modify certain terms and
conditions of the current term loan agreement and agreed to provide
a term loan in the amount of $20 million. The new term loan
provided an incremental $20.0 million in borrowings.
Vertex management continuously monitors current market
conditions to assess expected cash generation and liquidity needs
against its available cash position, using the forward crack
spreads in the market. Additionally, the Company continues to
evaluate strategic financial opportunities seeking further
enhancements to its current liquidity position.
Management Outlook
All guidance presented below is current as of the time of this
release and is subject to change. All prior financial guidance
should no longer be relied upon.
Conventional Fuels
3Q 2024
Operational:
Low
High
Mobile Refinery Conventional Throughput
Volume (Mbpd)
55.0
60.0
Capacity Utilization
73%
80%
Production Yield Profile:
Percentage Finished Products1
64%
68%
Intermediate & Other Products2
36%
32%
Financial Guidance:
Low
High
Direct Operating Expense ($/bbl)
$5.52
$6.02
Capital Expenditures ($/MM)
$15.00
$20.00
1) Finished products include gasoline,
ULSD, and Jet A
2) Intermediate & Other products
include Vacuum Gas Oil (VGO), Liquified Petroleum Gases (LPGs), and
Vacuum Tower Bottoms (VTBs)
CONFERENCE CALL AND WEBCAST DETAILS
A conference call will be held today, August 8, 2024, at 9:00
A.M. Eastern Time to review the Company’s financial results,
discuss recent events. 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: (888) 350-3870 International: (646) 960-0308
Conference ID: 8960754
A replay of the teleconference will be available in the “Events
and Presentation” section of Vertex’s website at
www.vertexenergy.com for up to one year following the conference
call.
ABOUT VERTEX ENERGY
Vertex Energy is a leading energy transition company that
specializes in producing high-purity refined fuels and products.
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 2024, the costs associated with, and outcome
of the Company’s plans to optimize conventional fuel and renewable
diesel production moving forward; statements concerning: the
Company’s engagement of BofA Securities, Inc., as previously
disclosed; the review and evaluation of potential joint ventures,
divestitures, acquisitions, mergers, business combinations, or
other strategic transactions, the outcome of such review, and the
impact on any such transactions, or the review thereof, and their
impact on shareholder value; the process by which the Company
engages in evaluation of strategic transactions; the Company’s
ability to identify potential partners; the outcome of potential
future strategic transactions and the terms thereof; potential
restructuring of the Company, its operations, financials, debts and
assets; the future production of the Company’s Mobile Refinery;
anticipated and unforeseen events which could reduce future
production at the refinery or delay future capital projects, and
changes in commodity and credit values; throughput volumes,
production rates, yields, operating expenses and capital
expenditures at the Mobile Refinery; the ability of the Company to
obtain low carbon fuel standard (LCFS) credits, and the amounts
thereof; the need for additional capital in the future, including,
but not limited to, in order to complete capital projects and
satisfy liabilities, including to pay amounts owed under the
Company’s outstanding term loan, the Company’s ability to raise
such capital in the future, and the terms of such funding,
including dilution caused thereby, and steps the Company may be
required to take in the future if the Company is unable to raise
additional capital, including potentially seeking bankruptcy
protection; the timing of 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 and
conventional production and the breakdown between the two;
estimated and actual production and costs associated with the
renewable diesel capital project; estimated revenues, margins and
expenses, 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 intermediation facilities, senior notes and a term loan
and to 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 and interest rates 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
and/or the Israel/Hamas conflict, changes in interest rates and
inflation, and potential recessions; 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, changes
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, 2023, and the Company’s Quarterly Report on
Form 10-Q for the quarter ended June 30, 2024, 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 AND KEY PERFORMANCE
INDICATORS
In addition to our results calculated under generally accepted
accounting principles in the United States (“GAAP”), in this news release we also present
certain non-U.S. GAAP financial measures and key performance
indicators. Non-U.S. GAAP financial measures include Adjusted Gross
Margin, Fuel Gross Margin and Adjusted EBITDA, for the Company’s
Legacy Refining and Marketing segment, and the total Refining and
Marketing segment, as a whole, and Net Long-Term Debt and Net
Leverage(collectively, the “Non-U.S. GAAP
Financial Measures”). Key performance indicators include
Adjusted Gross Margin, Fuel Gross Margin and Adjusted EBITDA for
Conventional, Renewable and the Mobile Refinery as a whole, and
Fuel Gross Margin Per Barrel of Throughput and Adjusted Gross
Margin Per Barrel of Throughput for Conventional, Renewable and the
Mobile Refinery as a whole (collectively, the “KPIs”). EBITDA represents net income before
interest, taxes, depreciation and amortization, for continued and
discontinued operations. Adjusted EBITDA represents EBITDA from
operations plus or minus unrealized gain or losses on hedging
activities, Renewable Fuel Standard (RFS) costs (mainly related to
Renewable Identification Numbers (RINs), and inventory adjustments,
acquisition costs, gain on change in value of derivative warrant
liability, environmental clean-up, stock-based compensation, (gain)
loss on sale of assets, 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 or
minus 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), 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, and various
short-term notes including insurance premium financing. Net
leverage is defined as Long-Term Debt divided by trailing twelve
month Adjusted EBITDA.
Each of the Non-U.S. GAAP Financial Measures and KPIs are
discussed in greater detail below. The (a) Non-U.S. GAAP Financial
Measures are “non-U.S. GAAP financial
measures”, and (b) the KPIs are, presented as supplemental
measures of the Company’s performance. They are not presented in
accordance with U.S. GAAP. We use the Non-U.S. GAAP Financial
Measures and KPIs as supplements to U.S. 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 U.S. 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-U.S. GAAP Financial Measures
and KPIs are presented because we believe they provide additional
useful information to investors due to the various noncash items
during the period. Non-U.S. GAAP financial information and KPIs
similar to the Non-U.S. GAAP Financial Measures and KPIs are also
frequently used by analysts, investors and other interested parties
to evaluate companies in our industry. The Non-U.S. GAAP Financial
Measures and KPIs 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
U.S. GAAP. Some of these limitations are: the Non-U.S. GAAP
Financial Measures and KPIs do not reflect cash expenditures, or
future requirements for capital expenditures, or contractual
commitments; the Non-GAAP Financial Measures and KPIs do not
reflect changes in, or cash requirements for, working capital
needs; the Non-GAAP Financial Measures and KPIs 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-U.S. GAAP Financial Measures
and KPIs do not reflect any cash requirements for such
replacements; the Non-U.S. GAAP Financial Measures and KPIs
represent only a portion of our total operating results; and other
companies in this industry may calculate the Non-U.S. GAAP
Financial Measures and KPIs differently than we do, limiting their
usefulness as a comparative measure. You should not consider the
Non-U.S. GAAP Financial Measures and KPIs in isolation, or as
substitutes for analysis of the Company’s results as reported under
U.S. GAAP. 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-U.S.
GAAP Financial Measures and KPIs to the most comparable U.S. GAAP
measure below. 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-U.S. GAAP Financial Measures and KPIs in conjunction with
the most directly comparable U.S. GAAP financial measure.
For more information on these non-GAAP financial measures and
KPIs, 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 and Operating Expenses 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 Net
Leverage”, at the end of this release.
VERTEX ENERGY, INC.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except number
of shares and par value)
(UNAUDITED)
June 30, 2024
December 31, 2023
ASSETS
Current assets
Cash and cash equivalents
$
18,763
$
76,967
Restricted cash
100
3,606
Accounts receivable, net
80,526
36,164
Inventory
126,319
182,120
Prepaid expenses and other current
assets
50,613
53,174
Total current assets
276,321
352,031
Fixed assets, net
343,341
326,111
Finance lease right-of-use assets
62,519
64,499
Operating lease right-of use assets
76,370
96,394
Intangible assets, net
9,773
11,541
Other assets
4,044
4,048
TOTAL ASSETS
$
772,368
$
854,624
LIABILITIES AND EQUITY
Current liabilities
Accounts payable
$
36,484
$
75,004
Accrued expenses and other current
liabilities
137,043
73,636
Finance lease liability-current
2,541
2,435
Operating lease liability-current
12,524
20,296
Current portion of long-term debt, net
197,235
16,362
Obligations under inventory financing
agreements, net
108,728
141,093
Total current liabilities
494,555
328,826
Long-term debt, net
14,530
170,701
Finance lease liability-long-term
64,918
66,206
Operating lease liability-long-term
62,702
74,444
Deferred tax liabilities
2,776
2,776
Derivative warrant liability
1,961
9,907
Other liabilities
1,377
1,377
Total liabilities
642,819
654,237
EQUITY
Common stock, $0.001 par value per share;
750,000,000 shares authorized; 93,514,346 shares issued and
outstanding at June 30, 2024 and December 31, 2023.
94
94
Additional paid-in capital
384,493
383,632
Accumulated deficit
(258,886
)
(187,379
)
Total Vertex Energy, Inc. shareholders'
equity
125,701
196,347
Non-controlling interest
3,848
4,040
Total equity
129,549
200,387
TOTAL LIABILITIES AND EQUITY
$
772,368
$
854,624
VERTEX ENERGY, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands, except per
share amounts)
(UNAUDITED)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Revenues
$
750,061
$
734,893
$
1,445,387
$
1,426,035
Cost of revenues (exclusive of
depreciation and amortization shown separately below)
741,202
729,649
1,393,236
1,349,001
Depreciation and amortization attributable
to costs of revenues
8,613
6,630
16,799
10,967
Gross profit (loss)
246
(1,386
)
35,352
66,067
Operating expenses:
Selling, general and administrative
expenses (exclusive of depreciation and amortization shown
separately below)
37,441
42,636
77,223
84,578
Depreciation and amortization attributable
to operating expenses
1,125
1,028
2,229
2,044
Total operating expenses
38,566
43,664
79,452
86,622
Loss from operations
(38,320
)
(45,050
)
(44,100
)
(20,555
)
Other income (expense):
Other income (expenses)
520
(496
)
(529
)
1,156
Gain on change in value of derivative
warrant liability
1,680
9,600
8,338
415
Interest expense
(17,725
)
(77,536
)
(35,408
)
(90,013
)
Total other expense
(15,525
)
(68,432
)
(27,599
)
(88,442
)
Loss from continuing operations before
income tax
(53,845
)
(113,482
)
(71,699
)
(108,997
)
Income tax expense
—
28,688
—
27,676
Loss from continuing operations
(53,845
)
(84,794
)
(71,699
)
(81,321
)
Income from discontinued operations, net
of tax (see note 22)
—
3,340
—
53,680
Net loss
(53,845
)
(81,454
)
(71,699
)
(27,641
)
Net loss attributable to non-controlling
interest from continuing operations
(72
)
(53
)
(192
)
(103
)
Net loss attributable to Vertex Energy,
Inc.
$
(53,773
)
$
(81,401
)
$
(71,507
)
$
(27,538
)
Net income loss attributable to common
shareholders from continuing operations
$
(53,773
)
$
(84,741
)
$
(71,507
)
$
(81,218
)
Net income attributable to common
shareholders from discontinued operations, net of tax
—
3,340
—
53,680
Net loss attributable to common
shareholders
$
(53,773
)
$
(81,401
)
$
(71,507
)
$
(27,538
)
Basic loss per common share
Continuing operations
$
(0.58
)
$
(1.07
)
$
(0.76
)
$
(1.05
)
Discontinued operations, net of tax
—
0.03
—
0.69
Basic loss per common share
$
(0.58
)
$
(1.04
)
$
(0.76
)
$
(0.36
)
Diluted income (loss) per common share
Continuing operations
$
(0.58
)
$
(1.07
)
$
(0.76
)
$
(1.05
)
Discontinued operations, net of tax
—
0.03
—
0.69
Diluted income (loss) per common share
$
(0.58
)
$
(1.04
)
$
(0.76
)
$
(0.36
)
Shares used in computing earnings per
share
Basic
93,514
79,519
93,514
77,615
Diluted
93,514
79,519
93,514
77,615
VERTEX ENERGY, INC.
CONSOLIDATED STATEMENTS OF
STOCKHOLDERS' EQUITY
(in thousands, except par
value)
(UNAUDITED)
Six Months Ended June 30,
2024
Common Stock
Shares
$0.001 Par
Additional Paid-In
Capital
Accumulated Deficit
Non- controlling
Interest
Total Equity
Balance on January 1, 2024
93,515
$
94
$
383,632
$
(187,379
)
$
4,040
$
200,387
Stock based compensation expense
—
—
431
—
—
431
Net loss
—
—
—
(17,734
)
(120
)
(17,854
)
Balance on March 31, 2024
93,515
94
384,063
(205,113
)
3,920
182,964
Stock based compensation expense
—
—
430
—
—
430
Net loss
—
—
—
(53,773
)
(72
)
(53,845
)
Balance on June 30, 2024
93,515
$
94
$
384,493
$
(258,886
)
$
3,848
$
129,549
Six Months Ended June 30,
2023
Common Stock
Shares
$0.001 Par
Additional Paid-In
Capital
Accumulated Deficit
Non- controlling
Interest
Total Equity
Balance on January 1, 2023
75,670
$
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
75,836
76
280,126
(62,030
)
2,615
220,787
Exercise of options
195
—
169
—
—
169
Stock based compensation expense
—
—
368
—
—
368
Non-controlling shareholder
contribution
—
—
—
—
490
490
Senior Note converted
17,206
17
101,113
—
—
101,130
Net income (loss)
—
—
—
(81,401
)
(53
)
(81,454
)
Balance on June 30, 2023
93,237
$
93
$
381,776
$
(143,431
)
$
3,052
$
241,490
VERTEX ENERGY, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in thousands)
(UNAUDITED)
Six Months Ended
June 30, 2024
June 30, 2023
Cash flows from operating activities
Net loss
$
(71,699
)
$
(27,641
)
Income from discontinued operations, net
of tax
—
53,680
Loss from continuing operations
(71,699
)
(81,321
)
Adjustments to reconcile loss from
continuing operations to cash used in operating activities from
continuing operations
Stock based compensation expense
861
733
Depreciation and amortization
19,028
13,011
Deferred income tax expense
—
(27,676
)
Loss on lease modification
35
—
Loss (gain) on sale of assets
684
(2
)
Increase (decrease) in allowance for
credit losses
(704
)
93
Decrease in fair value of derivative
warrant liability
(8,338
)
(415
)
Loss on commodity derivative contracts
1,551
2,123
Net cash settlements on commodity
derivatives contracts
(1,547
)
1,269
Amortization of debt discount and deferred
costs
9,416
70,948
Changes in operating assets and
liabilities
Accounts receivable and other
receivables
(43,658
)
(18,589
)
Inventory
55,801
(80,199
)
Prepaid expenses and other current
assets
3,001
(16,546
)
Accounts payable
(38,518
)
20,376
Accrued expenses
53,183
5,932
Right-of use operating lease liabilities
change
475
—
Other assets
4
(1,090
)
Net cash used in operating activities from
continuing operations
(20,425
)
(111,353
)
Cash flows from investing activities
Software purchase
—
(2,500
)
Purchase of fixed assets
(25,996
)
(105,344
)
Proceeds from sale of discontinued
operations
—
92,034
Proceeds from sale of fixed assets
2,584
5
Net cash used in investing activities from
continuing operations
(23,412
)
(15,805
)
Cash flows from financing activities
Payments on finance leases
(1,187
)
(908
)
Proceeds from exercise of options and
warrants to common stock
—
378
Contributions received from noncontrolling
interest
—
1,470
Net change on inventory financing
agreements
(32,615
)
43,657
Proceeds from note payable
28,997
13,081
Payments on note payable
(13,068
)
(24,422
)
Net cash provided by (used in) financing
activities from continuing operations
(17,873
)
33,256
Discontinued operations:
Net cash used in operating activities
—
(150
)
Net cash used in discontinued
operations
—
(150
)
Net decrease in cash, cash equivalents and
restricted cash
(61,710
)
(94,052
)
Cash, cash equivalents, and restricted
cash at beginning of the period
80,573
146,187
Cash, cash equivalents, and restricted
cash at end of period
$
18,863
$
52,135
VERTEX ENERGY, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in thousands)
(UNAUDITED)
(Continued)
Six Months Ended
June 30, 2024
June 30, 2023
Cash and cash equivalents
$
18,763
$
48,532
Restricted cash
100
3,603
Cash and cash equivalents and restricted
cash as shown in the consolidated statements of cash flows
$
18,863
$
52,135
SUPPLEMENTAL INFORMATION
Cash paid for interest
$
27,772
$
24,755
Cash paid for taxes
$
—
$
—
NON-CASH INVESTING AND FINANCING
TRANSACTIONS
Warrants issued with debt
$
(392
)
$
—
Conversion of Convertible Senior Notes to
common stock
$
—
$
79,948
ROU assets obtained from new finance
leases
$
16
$
23,990
ROU assets obtained from new operating
leases
$
1,084
$
38,945
ROU assets disposed under operating
leases
$
(9,747
)
$
—
Unaudited segment information for the
three and six months ended June 30, 2024 and 2023 is as follows (in
thousands):
Three Months Ended June 30,
2024
Refining &
Marketing
Black Oil &
Recovery
Corporate and
Eliminations
Total
Revenues:
Refined products
$
707,622
$
26,682
$
(1,892
)
$
732,412
Re-refined products
4,877
5,346
—
10,223
Services
4,504
2,922
—
7,426
Total revenues
717,003
34,950
(1,892
)
750,061
Cost of revenues (exclusive of
depreciation and amortization shown separately below)
714,003
29,091
(1,892
)
741,202
Depreciation and amortization attributable
to costs of revenues
6,945
1,668
—
8,613
Gross profit (loss)
(3,945
)
4,191
—
246
Selling, general and administrative
expenses
25,457
5,327
6,657
37,441
Depreciation and amortization attributable
to operating expenses
815
72
238
1,125
Loss from operations
(30,217
)
(1,208
)
(6,895
)
(38,320
)
Other income (expenses)
Other income (expense)
—
(56
)
576
520
Gain on change in derivative liability
—
—
1,680
1,680
Interest expense
(5,353
)
(141
)
(12,231
)
(17,725
)
Total other expense
(5,353
)
(197
)
(9,975
)
(15,525
)
Loss from continuing operations before
income tax
$
(35,570
)
$
(1,405
)
$
(16,870
)
$
(53,845
)
Capital expenditures
$
9,102
$
2,168
$
—
$
11,270
Three Months Ended June 30,
2023
Refining &
Marketing
Black Oil &
Recovery
Corporate and
Eliminations
Total
Revenues:
Refined products
$
702,606
$
21,797
$
(2,411
)
$
721,992
Re-refined products
5,011
3,536
—
8,547
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
)
Other income (expenses)
Other income (expense)
—
(499
)
3
(496
)
Loss on change in derivative liability
—
—
9,600
9,600
Interest expense
(4,529
)
(28
)
(72,979
)
(77,536
)
Total other expense
(4,529
)
(527
)
(63,376
)
(68,432
)
Loss from continuing operations before
income tax
$
(43,427
)
$
(3,509
)
$
(66,546
)
$
(113,482
)
Capital expenditures
$
27,762
$
2,827
$
—
$
30,589
Six Months Ended June 30,
2024
Refining &
Marketing
Black Oil &
Recovery
Corporate and
Eliminations
Total
Revenues:
Refined products
$
1,358,381
$
58,406
$
(2,914
)
$
1,413,873
Re-refined products
8,744
10,561
—
19,305
Services
7,585
4,624
—
12,209
Total revenues
1,374,710
73,591
(2,914
)
1,445,387
Cost of revenues (exclusive of
depreciation and amortization shown separately below)
1,336,978
59,172
(2,914
)
1,393,236
Depreciation and amortization attributable
to costs of revenues
13,485
3,314
—
16,799
Gross profit
24,247
11,105
—
35,352
Selling, general and administrative
expenses
51,604
10,724
14,895
77,223
Depreciation and amortization attributable
to operating expenses
1,608
144
477
2,229
Income (loss) from operations
(28,965
)
237
(15,372
)
(44,100
)
Other income (expenses)
Other income (expense)
(685
)
(415
)
571
(529
)
Gain on change in derivative liability
—
—
8,338
8,338
Interest expense
(10,100
)
(237
)
(25,071
)
(35,408
)
Total other expense
(10,785
)
(652
)
(16,162
)
(27,599
)
Loss from continuing operations before
income tax
$
(39,750
)
$
(415
)
$
(31,534
)
$
(71,699
)
Capital expenditures
$
20,401
$
5,595
$
—
$
25,996
Six Months Ended June 30,
2023
Refining &
Marketing
Black Oil &
Recovery
Corporate and
Eliminations
Total
Revenues:
Refined products
$
1,356,166
$
51,220
$
(5,143
)
$
1,402,243
Re-refined products
8,847
7,947
—
16,794
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
)
Other income (expenses)
Other income
—
1,156
—
1,156
Loss on change in derivative liability
—
—
415
415
Interest expense
(8,405
)
(85
)
(81,523
)
(90,013
)
Total other income (expense)
(8,405
)
1,071
(81,108
)
(88,442
)
Loss from continuing operations before
income tax
$
(8,375
)
$
(3,663
)
$
(96,959
)
$
(108,997
)
Capital expenditures
$
97,670
$
7,674
$
—
$
105,344
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 and Operating Expenses Per Barrel of
Throughput.
Three Months Ended June 30,
2024
In thousands
Conventional
Renewable
Mobile Refinery Total
Gross profit
$
6,407
$
(11,847
)
$
(5,440
)
Unrealized (gain) loss on hedging
activities
353
(302
)
51
Inventory valuation adjustments
3,233
2,524
5,757
Adjusted gross margin
$
9,993
$
(9,625
)
$
368
Variable production costs attributable to
cost of revenues
19,671
12,182
31,853
Depreciation and amortization attributable
to cost of revenues
2,960
3,933
6,893
RINs
9,099
-
9,099
Realized (gain) loss on hedging
activities
(56
)
158
102
Financing costs
(4,397
)
85
(4,312
)
Other revenues
(2,296
)
(2,208
)
(4,504
)
Fuel gross margin
$
34,974
$
4,525
$
39,499
Throughput (bpd)
67,758
3,092
70,850
Fuel gross margin per barrel of
throughput
$
5.67
$
16.08
$
6.13
Total OPEX
$
15,942
$
8,934
$
24,876
Operating expenses per barrel of
throughput
$
2.59
$
31.75
$
3.86
Three Months Ended March 31,
2024
In thousands
Conventional
Renewable
Mobile Refinery Total
Gross profit
$
37,508
$
(10,462
)
$
27,046
Unrealized (gain) loss on hedging
activities
(555
)
934
379
Inventory valuation adjustments
9,657
4,592
14,249
Adjusted gross margin
$
46,610
$
(4,936
)
$
41,674
Variable production costs attributable to
cost of revenues
25,651
6,846
32,497
Depreciation and amortization attributable
to cost of revenues
2,558
3,932
6,490
RINs
(857
)
-
(857
)
Realized (gain) loss on hedging
activities
2,577
(1,783
)
794
Financing costs
(172
)
132
(40
)
Other revenues
(2,719
)
(362
)
(3,081
)
Fuel gross margin
$
73,648
$
3,829
$
77,477
Throughput (bpd)
64,065
4,090
68,155
Fuel gross margin per barrel of
throughput
$
12.63
$
10.29
$
12.49
Total OPEX
$
16,061
$
9,382
$
25,443
Operating expenses per barrel of
throughput
$
2.75
$
25.21
$
4.10
Six Months Ended June 30,
2024
In thousands
Conventional
Renewable
Mobile Refinery Total
Gross profit
$
43,917
$
(22,310
)
$
21,607
Unrealized (gain) loss on hedging
activities
(202
)
632
430
Inventory valuation adjustments
12,890
7,117
20,007
Adjusted gross margin
$
56,605
$
(14,561
)
$
42,044
Variable production costs attributable to
cost of revenues
45,322
19,029
64,351
Depreciation and amortization attributable
to cost of revenues
5,518
7,865
13,383
RINs
8,242
-
8,242
Realized (gain) loss on hedging
activities
2,521
(1,625
)
896
Financing costs
(4,569
)
217
(4,352
)
Other revenues
(5,015
)
(2,570
)
(7,585
)
Fuel gross margin
$
108,624
$
8,355
$
116,979
Throughput (bpd)
65,911
3,591
69,502
Fuel gross margin per barrel of
throughput
$
9.06
$
12.78
$
9.25
Total OPEX
$
32,002
$
18,316
$
50,318
Operating expenses per barrel of
throughput
$
2.67
$
28.03
$
3.98
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, 2024
June 30, 2023
June 30, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Net income (loss)
$
(53,845
)
$
(81,454
)
$
(71,699
)
$
(27,641
)
$
(116,031
)
$
38,947
Depreciation and amortization
9,738
7,658
19,028
13,156
37,182
24,541
Income tax expense (benefit)
-
(27,236
)
-
(8,477
)
13,774
(10,966
)
Interest expense
17,725
77,536
35,408
90,013
64,961
118,008
EBITDA
$
(26,381
)
$
(23,496
)
$
(17,263
)
$
67,051
$
(114
)
$
170,530
Unrealized (gain) loss on hedging
activities
8
3,370
453
3,115
(2,914
)
(43,664
)
Inventory valuation adjustments
5,757
(501
)
20,007
(2,033
)
28,132
25,553
Gain on change in value of derivative
warrant liability
(1,680
)
(9,600
)
(8,338
)
(415
)
(15,915
)
(12,760
)
Stock-based compensation
430
368
861
733
2,412
1,733
(Gain) loss on sale of assets
(8
)
(4,291
)
684
(72,032
)
686
(71,109
)
Acquisition costs
-
-
-
4,308
-
7,197
Environmental clean-up reserve
-
-
-
-
-
-
Other
(512
)
-
(154
)
-
366
(3
)
Adjusted EBITDA
$
(22,386
)
$
(34,150
)
$
(3,750
)
$
727
$
12,654
$
77,477
Three Months Ended June 30,
2024
Mobile Refinery
Legacy Refining &
Marketing
Total Refining &
Marketing
Black Oil and Recovery
Corporate
Consolidated
In thousands
Conventional
Renewable
Net income (loss)
$
(13,046
)
$
(23,438
)
$
914
$
(35,570
)
$
(1,405
)
$
(16,870
)
$
(53,845
)
Depreciation and amortization
3,754
3,954
52
7,760
1,740
238
9,738
Income tax expense (benefit)
-
-
-
-
-
-
-
Interest expense
2,717
2,636
-
5,353
141
12,231
17,725
EBITDA
$
(6,575
)
$
(16,848
)
$
966
$
(22,457
)
$
476
$
(4,401
)
$
(26,382
)
Unrealized (gain) loss on hedging
activities
353
(302
)
-
51
(42
)
-
9
Inventory valuation adjustments
3,233
2,524
-
5,757
-
-
5,757
Gain on change in value of derivative
warrant liability
-
-
-
-
-
(1,680
)
(1,680
)
Stock-based compensation
-
-
-
-
-
430
430
(Gain) loss on sale of assets
-
-
-
-
-
(8
)
(8
)
Other
-
-
-
-
56
(568
)
(512
)
Adjusted EBITDA
$
(2,989
)
$
(14,626
)
$
966
$
(16,649
)
$
490
$
(6,227
)
$
(22,386
)
Six Months Ended June 30,
2024
Mobile Refinery
Legacy Refining &
Marketing
Total Refining &
Marketing
Black Oil and Recovery
Corporate
Consolidated
In thousands
Conventional
Renewable
Net income (loss)
$
4,492
$
(45,596
)
$
1,354
$
(39,750
)
$
(415
)
$
(31,534
)
$
(71,699
)
Depreciation and amortization
7,084
7,907
102
15,093
3,458
477
19,028
Income tax expense (benefit)
-
-
-
-
-
-
-
Interest expense
5,172
4,928
-
10,100
237
25,071
35,408
EBITDA
$
16,748
$
(32,761
)
$
1,456
$
(14,557
)
$
3,280
$
(5,986
)
$
(17,263
)
Unrealized (gain) loss on hedging
activities
(202
)
632
20
450
4
-
454
Inventory valuation adjustments
12,890
7,117
-
20,007
-
-
20,007
Gain on change in value of derivative
warrant liability
-
-
-
-
-
(8,338
)
(8,338
)
Stock-based compensation
-
-
-
-
-
861
861
(Gain) loss on sale of assets
685
-
-
685
5
(7
)
683
Other
-
-
-
-
410
(564
)
(154
)
Adjusted EBITDA
$
30,121
$
(25,012
)
$
1,476
$
6,585
$
3,699
$
(14,034
)
$
(3,750
)
Three Months Ended June 30,
2023
In thousands
Mobile Refinery
Legacy Refining
and}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
)
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 and
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 March 31,
2024
Mobile Refinery
Legacy Refining &
Marketing
Total Refining &
Marketing
Black Oil and Recovery
Corporate
Consolidated
In thousands
Conventional
Renewable
Net income (loss)
$
17,535
$
(22,157
)
$
442
$
(4,180
)
$
990
$
(14,664
)
$
(17,854
)
Depreciation and amortization
3,330
3,953
51
7,334
1,717
239
9,290
Income tax expense (benefit)
-
-
-
-
-
-
-
Interest expense
2,455
2,292
-
4,747
96
12,840
17,683
EBITDA
$
23,320
$
(15,912
)
$
493
$
7,901
$
2,803
$
(1,585
)
$
9,119
Unrealized (gain) loss on hedging
activities
(555
)
934
20
399
46
-
445
Inventory valuation adjustments
9,657
4,592
-
14,249
-
-
14,249
Gain on change in value of derivative
warrant liability
-
-
-
-
-
(6,658
)
(6,658
)
Stock-based compensation
-
-
-
-
-
430
430
(Gain) loss on sale of assets
685
-
-
685
5
1
691
Other
-
-
-
-
354
4
358
Adjusted EBITDA
$
33,107
$
(10,386
)
$
513
$
23,234
$
3,208
$
(7,808
)
$
18,634
Unaudited Reconciliation of Long-Term Debt
to Net Long-Term Debt and Net Leverage.
In thousands
As of
June 30, 2024
June 30, 2023
Long-Term Debt:
Senior Convertible Note
$
15,230
$
15,230
Term Loan 2025
207,169
150,075
Promissory Note
4,414
-
Finance lease liability long-term
64,918
67,290
Finance lease liability short-term
2,541
2,320
Various short term note including
insurance premium financing
9,500
9,995
Long-Term Debt and Lease
Obligations
$
303,772
$
244,910
Unamortized discount and deferred
financing costs
(24,548
)
(33,402
)
Long-Term Debt and Lease Obligations
per Balance Sheet
$
279,224
$
211,508
Cash and Cash Equivalents
(18,763
)
(48,532
)
Restricted Cash
(100
)
(3,603
)
Total Cash and Cash Equivalents
$
(18,863
)
$
(52,135
)
Net Long-Term Debt
$
284,909
$
192,775
TTM Adjusted EBITDA
$
12,654
$
77,477
Net Leverage
22.5x
2.5x
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240808774721/en/
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